What is an accredited investor?
An investor who has over $1 million in net worth (minus their home) or earned over $200,000 for the past two years and expects the same this year ($300,000 if joint with spouse).
Some entities are also accredited investors:
-A bank, insurance company, registered investment company, business development company, or small business investment company;
-An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
-A charitable organization, corporation, or partnership with assets exceeding $5 million;
-A director, executive officer, or general partner of the company selling the securities;
-A business in which all the equity owners are accredited investors;
-A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes."