An accredited investor is a person or entity that meets certain financial criteria and is allowed to invest in private companies and other higher-risk investments that are not available to the general public.
In the United States, an individual typically qualifies if they have:
- Income: Over $200,000 per year ($300,000 with a spouse) for the past two years, or
- Net worth: Over $1 million, excluding their primary residence
Accredited investors are considered financially sophisticated enough to understand and take on higher investment risks.
