Legal and compliance
Accredited investor
An investor who meets the SEC's wealth or professional tests to invest in private funds.
For individuals the tests include income above 200,000 dollars a year, or 300,000 with a spouse, or net worth above one million dollars excluding the primary residence. Certain licensed professionals and larger entities also qualify.
Why it matters when you raise
You must confirm status for every investor, and under Rule 506(c) you must verify it.