What is an accredited investor?

Accredited investors meet standards that are defined by securities regulators, which vary between countries. In order to invest on AngelList Venture, you must at least meet US accreditation requirements. The SEC website contains the full definition under US law. In general, you must meet one of the following standards:

  • Individuals with annual income over $200K (individually) or $300K (with a spouse) in each of the last 2 years and an expectation of the same this year
  • Individuals with net assets over $1 million, excluding the primary residence (unless more is owed on the mortgage than the residence is worth)
  • An entity with over $5 million in assets, such as a venture fund or a trust
  • An entity made up entirely of accredited investors

Non-U.S. investors should review the standards under their country's law. For example, the OSC website contains the full definition of accreditation requirements that are also applicable to Canadian investors, which in general require meeting one of the following standards:

  • Individuals with annual income over $200K CAD (individually) or $300K CAD (with a spouse) in each of the last 2 years and an expectation of the same this year.
  • Individuals who, either alone or with a spouse, beneficially own financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1 million CAD.
  • Individuals who, either alone or with a spouse, have net assets of at least $5 million CAD
Was this article helpful?
10 out of 12 found this helpful