Accredited Investor

A U.S. investor who meets SEC income or net-worth thresholds — the standard eligibility bar for most startup rounds. Plain-language explainer with examples.

Accredited Investor

A U.S. investor who meets SEC income or net-worth thresholds — the standard eligibility bar for most startup rounds.

What Accredited Investor means

Current SEC thresholds: $200K in annual income ($300K jointly) for the last two years with reasonable expectation of the same, or $1M net worth excluding primary residence. Certain professional licenses also qualify.

Most Regulation D private-placement rounds — how startups raise — are restricted to accredited investors. Verify status before accepting checks; the SEC doesn't take founder ignorance as a defense.

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