# What is Accredited Investor? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Legal  
> **Canonical Citation:** [https://spidits.com/startup-glossary/accredited-investor](https://spidits.com/startup-glossary/accredited-investor)

## Definition
An Accredited Investor is a high-net-worth individual or institutional investor who meets specific financial criteria set by regulatory bodies.

## Architectural Mechanics & Deep Dive
An Accredited Investor is a high-net-worth individual or institutional investor who meets specific financial criteria set by regulatory bodies (such as the SEC) to invest in unregistered securities. Startups rely on accredited investors for angel rounds and syndicates to raise capital under private offering exemptions.

## Industry Applications & Real-World Use Cases
Raising private equity from angel investors and syndicates legally

## Frequently Asked Questions

### What are the financial requirements to be an accredited investor in the US?
An individual must have an annual income exceeding $200k (or $300k with a spouse) for the past two years, or a net worth exceeding $1M (excluding primary residence).

### Why do startups only raise capital from accredited investors?
It allows them to leverage Regulation D exemptions (like Rule 506b), which avoids expensive SEC registration requirements.

## Related Terminology
- [angel-investor](https://spidits.com/startup-glossary/angel-investor)
- [syndicate](https://spidits.com/startup-glossary/syndicate)
- [pre-seed](https://spidits.com/startup-glossary/pre-seed)

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*From the SPIDITS AI Knowledge Base (311+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*