Accredited Investor

An accredited investor is a term used by the SEC (U.S. Securities and Exchange Commission) to describe a person or entity that is financially sophisticated and has a high net worth. The SEC has defined an accredited investor as having a net worth of at least $1 million or an annual income of over $200,000 (or $300,000 for joint income). Accredited investors are able to participate in certain investment opportunities that are not available to the general public, such as private placements, hedge funds, and venture capital funds.