What Is An Accredited Investor?
When raising money from investors you need to know what the rules and laws are conversing your stock offering.
In the work of Sharks there are what are called "Angel Investors" and they are not quite sharks but in most case are professional investors.
In order to be considered an Angel Investor you must be an "Accredited" as defined by the SEC (Securities Exchange Commission) rules and guidelines set forth in Rule 501 of Regulation D (17 CFR 230.501).
Under that definition, an accredited investor includes:
- Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000; or
- Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.
When doing a "private offering" you are limited to how many Accredited Investors" and "Un-Acredited Investors" you can have in your offering. For a free legal consultation in this are please click this link: Angel Networks FREE Legal Advice




