What is the difference between an Accredited Investor and a Non-Accredited Investor?
An accredited is an investor with a special status under securities regulations. Generally, accredited investors include high net worth individuals, entities comprised solely of high net worth individuals banks, financial institutions and other large corporations, who have access to complex and higher-risk investments such as venture capital, hedge funds, and angel investments. The intent of the classification is to protect non-accredited investors, who may be less capable of recovering from loss due to risky investments. In the United States, to be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year. Currently, you have to be an accredited investor to invest in any SmartCapital portfolio.