According to the US Securities and Exchange Commission (SEC), an accredited investor is an individual or entity that meets certain financial criteria and is deemed to have sufficient financial sophistication and ability to bear the risks associated with certain types of investments. The SEC’s definition includes several categories of accredited investors, such as:

1. Individuals:

• Those with an annual income exceeding 200,000(300,000 for joint income) in the two most recent years, with the expectation of reaching a similar income level in the current year.
• Those with a net worth exceeding $1 million, either individually or jointly with a spouse, excluding the value of their primary residence.

2. Entities:

• Certain corporations, partnerships, and organizations with total assets exceeding $5 million.
• Certain trusts with assets in excess of $5 million, not formed for the specific purpose of acquiring the securities offered.