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An accredited investor is an individual or entity that meets certain federal requirements and can invest in securities that aren’t registered with the Securities and Exchange Commission (SEC). 

If you want to raise money for your startup from angel investors, the angel could have to meet the accredited investor requirements to invest in your company. The requirements can depend on the person’s income, net worth, or knowledge. 

For example, someone may qualify as an accredited investor if they:

• Earned at least $200,000 (or had a joint income with their spouse or spouse equivalent of at least $300,000), during the two most recent years.
• Have an individual or joint net worth of at least $1,000,000, not including their primary residence or debt.
• Hold a Series 7, 65, or 82 license and be in good standing, or be a “knowledgeable employee” of certain private funds. 

Companies, trusts, funds, and other organizations may also qualify as accredited investors.