# Accredited investor

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

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](https://ecosystem.samcarlton.com/revenue), net worth or professional [credentials](https://ecosystem.samcarlton.com/api-key). Many private investments in startups are open only to accredited investors.

**For example:** A [founder](https://ecosystem.samcarlton.com/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](https://ecosystem.samcarlton.com/angel-investor): An individual who invests their own money in a very young company, usually in exchange for equity or through a SAFE or convertible note.
- [SAFE](https://ecosystem.samcarlton.com/safe): Simple agreement for future equity.
- [Venture capital](https://ecosystem.samcarlton.com/venture-capital): Money that professional investment firms put into young companies in exchange for equity.
- [Limited partner](https://ecosystem.samcarlton.com/limited-partner): An investor who puts money into a venture fund.
- [Angel group](https://ecosystem.samcarlton.com/angel-group): A group of angel investors who hear startup pitches together.
- [Folds Ventures](https://ecosystem.samcarlton.com/folds-ventures): A Tulsa venture fund that makes early-stage investments in companies founded by military veterans and first responders.

> 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.

Map view: https://ecosystem.samcarlton.com/accredited-investor