Accredited investor

Also called: accredited, accredited investors, accreditation, non-accredited

A person or organization that meets tests set by the US securities regulator, the SEC, based on income, net worth or professional credentials. Many private investments in startups are open only to accredited investors.

For example: A founder's neighbor offers to invest. The founder's lawyer asks whether the neighbor is an accredited investor before the company accepts the money.

Connects to 6

Angel investor Concept
SAFE Concept
Venture capital Concept
Limited partner Concept
Angel group Concept
Folds Ventures Investor

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.