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Accredited Investor – Reg-D

Angel investors are normally individuals who have gained “accredited investor” status but this isn’t a prerequisite. The Securities and Exchange Commission (SEC) Reg-D defines an “accredited investor” as one with a net worth of $1M in assets or more (excluding personal residences), or have earned $200k in income for the previous two years, or having a combined income of $300k for married couples.2 Conversely, being an accredited investor is not synonymous with being an angel investor.
Any entity in which all of the equity owners are accredited, investors.
Any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person

This regulation is designed to provide a certain level of a safety net to the investor and to ensure that they will not be taking advantage or be defrauded by unqualified entities that are dealing with and or selling securities to the public.