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What is an accredited investor (as of 3/15/21)?
An accredited investor under U.S. standard is any investor meeting criteria determined by the SEC under Rule 501.
An individual accredited investor is someone that has:
- A net worth in excess of $1,000,000, not including your primary residence; or
- Historic and expected income of over $200,000 (or $300,000 for couples) in a calendar year; or
- An individual holder in good standing of certain FINRA licenses, specifically the Series 7, Series 65, or the Series 82; or
- Knowledgeable employees of a fund with respect to investments in a private fund; or
- An executive of the issuer of an executive of the GP of the issuer.
An accredited investor as an entity is:
- Any business trust, partnership, or limited liability company with total assets worth more than $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person; or
- Any entity in which all of the equity owners are individual accredited investors; or
- Family offices with at least $5 million in assets under management and their “family clients”; or
- Spousal equivalent to the accredited investor definition, so that spousal equivalents may pool their finances for the purpose of qualifying as accredited investors; or
- Certain other specialized entities described in Rule 501.
Under SEC Rule 501, those qualifying as “accredited investors” may invest in deals not available to non-accredited investors — those who don’t meet the above criteria — as long as they can show documented proof towards their accreditation if prompted or audited.
Non-accredited investors can participate in Reg CF and A+ offerings with limits on how much they can invest, while accredited investors can do so without limits.
If and when accredited investors participate in Reg CF and Reg A+ deals, they do so without investment limits and without having their accreditation verified, whereas offerings under Reg D generally do require verification. The majority of deals hosted through Republic's platform are available to both accredited and non-accredited investors and all Republic deals under Reg CF and Reg A+ are open to both accredited and non-accredited investors.
Access accredited-only deals
If your net-worth and income disclosures grant you accreditation status in your investor settings, you may qualify for accredited-only deals run by OpenDeal Broker LLC or Republic Maximal LLC dba Republic Labs. Learn more