What is the role of accredited investors?
As companies raise capital, the accredited investor definition heavily influences their pool of potential investors, and as investors, the definition determines their eligibility to invest in many early-stage startups. A number of federal securities laws limit participation in offerings to accredited investors or contain restrictions on nonaccredited investors’ participation.
What are the requirements to become accredited?
Accredited investors (i.e., natural persons) are determined based on their wealth, income, and other financial sophistication measurements.