What is an Accredited Investor?

An Accredited Investor is an individual or institution permitted to invest in private, high-risk securities not registered with financial regulators. This status is granted based on income, net worth, or professional experience.

Qualification Criteria (U.S. Example)

• Individual income over $200,000 ($300,000 with a spouse) for the past two years, or

• Net worth exceeding $1 million, excluding the primary residence

Example

An investor with a $2.5 million net worth qualifies as an accredited investor and invests in a private venture capital fund.

Benefits

• Access to exclusive, potentially high-return investments

• Diversification opportunities beyond public markets