SEC "Accredited Investor" Criteria
To participate in an angel investment group, an individual must meet the US Securities and Exchange Commission’s definition of an “Accredited Investor”:
- a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase;
- a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
- a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
Visit the SEC website here: http://www.sec.gov/answers/accred.htm
