What is an Accredited Investor?
An accredited investor is as SEC (Securities and Exchange Commission) classification that *requires a U.S. investor meet one of the following, self-reported requirements to invest in **certain asset classes:
+ Have a personal net worth of over $1,000,000, excluding your primary residence.
+ Earn an annual income of $200,000 or more if you are filing as Single.
+ Earn an annual income of 300,000 or more if you are filing as Joint.
+ Be investing on behalf of an institution, fund or family office.
*Requirements: Since the JOBS Act was signed in 2012, equity crowdfunding platforms such as DreamFunded have been preparing for the implementation of Title III, also known as CrowdFunding. In May of 2016, regulations under Title III were implemented and now allows over 240 million Americans (97% of the U.S population) to invest in private companies.
**Certain Asset Classes: Accreditation rules restrict non-accredited investors from investing in specific asset classes. This includes Secondary Market Transactions. See the difference between primary and secondary transactions in the Education Section.