What is an Accredited Investor?

An accredited investor is person who is allowed to invest in securities that are not registered with the SEC. There are 2 main ways to qualify as an accredited investor: 

1. You have had an income of at least $200,000 per year for the last two years as an individual, or joint income with a spouse of at least $300,000 per year for the last two years. 
 
2. At the time of the security sale, you as an individual, or you joint with your spouse, have a net worth of over $1,000,000, excluding the value of your primary residence.
 
There is no official or governmental process that an accredited investor must go through in order to qualify as an accredited investor. Rather, the company or fund selling unregistered securities will directly conduct due-diligence prior to a sale in order to verify an investor's status. 
 

Frequently Asked Questions