Accredited investor
In accounting, accredited investor means a person or entity Regulation D trusts to bear a private offering's risk — among others, an individual with more than $1,000,000 of net worth excluding the primary residence, or more than $200,000 of income ($300,000 joint) in each of the last two years with the same expected; a director or executive officer of the issuer; an entity with more than $5,000,000 of assets.
Authority: 17 CFR §230.501(a) (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- Cap tableWays to raise: SAFEs, notes, priced rounds, debt and grants › Friends and family moneyThe same securities law as any round: Rule 506(b), accredited and non-accredited investors, and the paperwork that keeps the cap table clean.3 min
- Cap tableSecurities law for raising money › Regulation CrowdfundingUp to $5 million in 12 months from the public, through one intermediary, with per-investor limits.4 min
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- qualified purchaser
- sophisticated investor
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Equity & financing
Defined in Lexicon. This page is generated from that document, so the two can't disagree.