What Is an Accredited Investor?
An accredited investor is an individual or entity that meets specific financial criteria established by the U.S. Securities and Exchange Commission (SEC) under Regulation D of the Securities Act of 1933. This designation grants access to private securities offerings, pre-IPO shares, hedge funds, venture capital funds, and other alternative investments that are not registered with the SEC for public sale.
The accredited investor framework exists because the SEC presumes that individuals meeting certain wealth or professional thresholds have the financial sophistication and ability to bear the risks associated with unregistered securities. Approximately 24 million U.S. households (roughly 18% of all households) currently meet accredited investor criteria, a number that has grown substantially as the SEC expanded its definition in 2020 to include holders of certain professional certifications.
For investors interested in pre-IPO investing and private equity access, accredited investor status is typically the gateway requirement. Most secondary market platforms including Forge Global, EquityZen, and Hiive require accreditation before you can view or invest in deals.
SEC Qualification Requirements
You qualify as an accredited investor if you meet any one of the following criteria. You do not need to satisfy multiple requirements -- a single qualifying path is sufficient.
Income Test (Individual)
Annual income exceeding $200,000 in each of the two most recent years, with a reasonable expectation of reaching the same level in the current year.
Documentation: tax returns, W-2s, 1099s, or third-party verification letter.
Income Test (Joint)
Joint income with a spouse or spousal equivalent exceeding $300,000 in each of the two most recent years, with a reasonable expectation of reaching the same level in the current year.
Documentation: joint tax returns or combined individual returns.
Net Worth Test
Individual or joint net worth exceeding $1,000,000, excluding the value of your primary residence. This can be calculated individually or jointly with a spouse.
Documentation: brokerage statements, bank statements, property appraisals, or CPA letter.
Professional Certifications
Holders of Series 7, Series 65, or Series 82 FINRA licenses qualify regardless of income or net worth. Added in the 2020 SEC rule update.
Documentation: FINRA BrokerCheck verification or license documentation.
Entity Qualification
Entities such as trusts, LLCs, corporations, and partnerships qualify as accredited investors if they have total assets exceeding $5,000,000 and were not formed for the specific purpose of acquiring the securities offered. Additionally, any entity in which all equity owners are individually accredited investors also qualifies. Banks, registered investment companies, and business development companies qualify automatically.
Net Worth Calculation: What Counts
The net worth calculation for accredited investor status follows specific SEC rules that differ from how most people typically think about net worth. The most important distinction is the primary residence exclusion, which was added by the Dodd-Frank Act in 2010.
Included in Net Worth
- + Cash and savings accounts
- + Brokerage and investment accounts
- + Retirement accounts (401k, IRA, pension)
- + Investment real estate (not primary home)
- + Business equity and ownership stakes
- + Vehicles and personal property
- + Life insurance cash value
- + Vested stock options (net of exercise cost)
Excluded or Deducted
- - Primary residence value
- - Mortgage on primary residence (up to FMV)
- - Mortgage exceeding FMV (deducted from net worth)
- - All other debts and liabilities
- - Student loans
- - Auto loans
- - Credit card balances
- - Any new mortgage debt from past 60 days
Worked Example
| Brokerage accounts | $450,000 |
| 401(k) balance | $320,000 |
| Rental property equity | $180,000 |
| Cash and savings | $85,000 |
| Vehicle value | $35,000 |
| Primary residence ($500K value) | Excluded |
| Student loans | -$25,000 |
| Auto loan | -$15,000 |
| Net Worth (SEC calculation) | $1,030,000 |
This individual qualifies as accredited with $1.03M net worth (above the $1M threshold), even though their primary residence worth $500K is excluded from the calculation.
Verification Methods
How you verify your accredited investor status depends on the platform and the type of offering. SEC Regulation D Rule 506(b) offerings allow self-certification, while Rule 506(c) offerings (which permit general solicitation) require independent third-party verification. Most secondary market platforms use one of three approaches.
| Method | Process | Timeline | Cost | Used By |
|---|---|---|---|---|
| Self-Certification | Check a box or sign a questionnaire attesting to your status | Instant | Free | Hiive, many 506(b) offerings |
| Third-Party Service | Upload documents to Verify Investor, Parallel Markets, or similar | 1-3 business days | $50-150 (often platform-paid) | EquityZen, Forge Global, most 506(c) |
| CPA / Attorney Letter | Licensed CPA, attorney, or RIA provides written verification | 5-10 business days | $100-500 | Accepted by all platforms |
| Broker-Dealer Verification | Your broker-dealer or RIA certifies your status | 1-5 business days | Often free | CAIS, iCapital, advisor platforms |
Verification letters are typically valid for 90 days under SEC guidelines. After expiration, you will need to re-verify before making new investments. Some platforms maintain ongoing verification through data providers that can confirm your status automatically based on linked financial accounts.
Platform Accreditation Requirements
Not every private market platform requires accreditation. The table below shows which major platforms require accredited investor status and which are open to all investors. For a detailed comparison of features and fees, see our platform comparison tool.
| Platform | Accreditation | Verification | Minimum | Structure |
|---|---|---|---|---|
| Forge Global | Required | Third-party | $100,000 | Direct shares |
| EquityZen | Required | Self-cert + docs | $10,000 | SPV |
| Hiive | Required | Self-certification | Varies | Direct shares |
| Fundrise | Not required | N/A | $10 | Interval fund |
| Republic | Not required (most) | N/A | $50 | Reg CF / Reg A+ |
| ARK Venture Fund | Not required | N/A | $500 | Interval fund |
| Robinhood Venture Fund | Not required | N/A | $100 | Venture fund |
| Carta | Required | Third-party | $25,000 | Direct shares |
| CAIS | Required (QP) | Advisor-verified | $100,000+ | Fund access |
| iCapital | Required (QP) | Advisor-verified | $100,000+ | Fund access |
Options for Non-Accredited Investors
If you do not currently meet accredited investor requirements, several pathways still provide exposure to private companies and alternative investments. These options use regulatory frameworks such as Regulation A+ and Regulation Crowdfunding that allow offerings to non-accredited investors with certain limitations.
Fundrise Innovation Fund
$10 minimumThe Fundrise Innovation Fund is an interval fund that provides diversified exposure to late-stage private technology companies including OpenAI, Anthropic, Anduril, and Databricks. With a minimum investment of just $10, it is the most accessible way for non-accredited investors to gain pre-IPO exposure. The fund charges a 1.85% annual management fee and offers quarterly liquidity windows. You cannot select individual companies -- the fund manager allocates across a portfolio of 20+ holdings.
Republic
$50 minimumRepublic offers Regulation Crowdfunding and Regulation A+ deals to all investors. You can invest in individual startups and growth-stage companies starting at $50. Note that Republic deals tend to be earlier-stage companies rather than the late-stage pre-IPO names available on platforms like EquityZen or Forge. Non-accredited investors are subject to annual investment limits based on income and net worth.
ARK Venture Fund
$500 minimumManaged by Cathie Wood's ARK Invest, the ARK Venture Fund blends public and private holdings across disruptive technology sectors. Available to non-accredited investors through the Titan platform with a $500 minimum. The fund holds positions in SpaceX, Epic Games, and other private companies alongside public equities. Annual fee is 2.75%, which is higher than most alternatives in this space.
Publicly Traded PE and Alternatives
No minimumYou can buy shares of publicly traded private equity firms such as Blackstone (BX), KKR (KKR), Apollo (APO), and Ares Management (ARES) through any standard brokerage account. While this gives you exposure to the PE business model rather than direct private company ownership, these stocks correlate strongly with private market performance. Business development companies (BDCs) like Ares Capital (ARCC) offer another public market avenue into private lending.
For a detailed comparison of the top non-accredited options, see our Fundrise vs EquityZen vs Hiive comparison.
Upcoming SEC Changes to Accredited Investor Rules
The SEC has signaled that further updates to the accredited investor definition are under consideration. The most significant change came in 2020 when the Commission added professional certifications (Series 7, 65, and 82) as a qualifying pathway independent of wealth thresholds. Since then, industry groups and SEC commissioners have discussed several potential expansions.
Among the proposals being considered are adding additional professional certifications (such as CFA charterholders and CFP professionals), creating an examination-based pathway that would allow any individual to demonstrate financial sophistication, and adjusting the income and net worth thresholds for inflation. The current $200,000 individual income threshold has not been adjusted since it was established in 1982, when $200,000 had the purchasing power of approximately $650,000 in 2026 dollars.
Some SEC commissioners have also advocated for allowing individuals to self-certify based on investment experience, education, or passing a financial literacy examination. These proposals remain in the discussion phase, and any formal rulemaking would require a public comment period before implementation. Investors should monitor SEC announcements and our FAQ page for the latest updates on accredited investor rule changes.
Key Dates to Watch
- 2020: SEC added Series 7, 65, 82 licenses and "knowledgeable employees" of private funds.
- 2023-2024: SEC Investor Advisory Committee recommended exam-based qualification pathway.
- 2025-2026: Rulemaking expected to address inflation adjustment and additional certifications.