An accredited investor is someone who meets specific criteria outlined by the SEC and by federal law and is therefore eligible to participate in certain investment offerings. In order to be considered accredited, an individual must have had an income of at least $200,000 for the past two years (or $300,000 combined with a spouse or spousal equivalent) or have a net worth of over $1 million not including their primary residence. Institutions such as trusts, endowments and venture funds can also be certified as accredited provided that they have more than $5 million in assets.  There are other ways you may be considered an accredited investor. If you want to read the exact language of the law defining the term “accredited investor” click here.