Accredited Investor Definition Rule 501
An accredited investor, in the context of a natural person, includes anyone who:
Certain types of entities, including banks, hedge funds, broker/dealers, employee benefit plans, partnerships, charitable organizations, corporations, corporate officers of the issuers, and trusts with assets over $5 million can also qualify as “accredited investors. Additionally in an instance where an entity in which all of the equity owners are accredited investors, that entity is considered an accredited investor.
The regulators are very serious about enforcing the rules of solicitation and how perspective investors can be approached.
We would like to issue a word of caution when considering taking in funds from non accredited investors.