Business Terms Glossary
Accredited Investor
Definition of Accredited Investor
An Accredited Investor is defined by Rule 501 of Regulation D to be an individual (i.e. non-corporate) who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of investment.
Alternatively, an individual can qualify as an accredited investor if he or she has income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
For the complete definition of accredited investor, see the SEC definition of an accredited investor.
As an entrepreneur, it's important to understand this concept if you plan on raising money from family members or angel investors.
Accredited Investor References On This Site
These Gaebler.com articles mention this glossary term:
- Accredited Investors - In fact, your best move might actually be to turn down investment capital - especially if it isn't coming from an accredited investor...
- Accredited Investors - In fact, your best move might actually be to turn down investment capital - especially if it isn't coming from an accredited investor...
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