What is an accredited investor?
An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience.
Accreditation status depends on whether you qualify as an individual, trust, business entity, or DAO. Below are the different pathways to accreditation.
Individual accreditation
An individual can qualify via income, net worth, or professional certification:
Income-based accreditation
- Annual income of $200,000 (individual) or $300,000 (joint with spouse/partner) for each of the past two years
- Must reasonably expect to maintain the same income in the current year
- If using joint income in either year, the $300,000 threshold must be met for both years
Net worth-based accreditation
- Net worth exceeds $1 million, individually or jointly with a spouse
- Primary residence is excluded from net worth calculation
- Must include documentation of liabilities (e.g., consumer credit report)
Professional certification accreditation
- Holds a valid Series 7, Series 65, or Series 82 FINRA license
- Must be in good standing
Accredited trusts
Trusts can be accredited based on type and total assets.
Revocable trust accreditation
A revocable trust qualifies if:
- All grantors are accredited investors, or
- The trust has $5 million in total assets
Required documentation
- Option 1 (recommended): Letter from a licensed CPA, attorney, SEC-registered investment advisor, or broker
- Option 2: Submit trust documents to AngelList attorneys
Irrevocable trust accreditation
An irrevocable trust qualifies if it has $5 million in assets.
Required documentation
- Option 1 (recommended): Letter from a licensed CPA, attorney, SEC-registered investment advisor, or broker
- Option 2: Provide supporting documents such as:
- Bank or brokerage statements
- Certificates of deposit
- Tax assessments
- Third-party appraisal reports
Business entities (firms or funds)
A business entity can qualify if it meets either of the following:
- Has over $5 million in assets and was not formed solely to purchase securities
- Entities with over $25 million in assets qualify as qualified purchasers
- All equity owners of the entity are accredited investors
DAOs
A Decentralized Autonomous Organization (DAO) qualifies if it meets one of the following:
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Has over $5 million in assets and was not formed solely to purchase securities
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All equity holders are accredited investors
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Is a registered investment advisor or exempt reporting advisor with a State or the SEC
Accreditation evidence for US individual Investors
To verify accreditation as a US individual investor, you can provide one of the following four types of evidence:
1. Income evidence (fastest method)
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Must show individual income > $200K or joint income > $300K for the past two years and expect to meet the threshold this year.
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If relying on joint income for one year, both years must meet the $300K threshold.
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Accepted documents: W-2s, 1040s, K-1s, or official tax docs (no employer-issued or self-prepared docs).
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For the most recent year only, pay stubs + employer verification letter may be accepted if tax docs are unavailable.
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Documents must be in English or accompanied by third-party attestation.
2. Net worth evidence (> $1M, excluding primary residence)
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Must provide evidence of both assets and liabilities, dated within the last 90 days.
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Liabilities: Soft credit pull (if SSN is provided) or consumer credit report from a major bureau.
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Assets:
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Bank/brokerage statements (not balance letters).
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Audited financials, private equity holdings (with 409A valuation < 12 months).
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Crypto holdings (must list investor's name).
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Assets in an irrevocable trust generally do not count.
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3. Professional license certification
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Investors with Series 7, 65, or 82 FINRA licenses are automatically verified via BrokerCheck.
4. Third-party attestation letters
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Must be from a Licensed Attorney, CPA, SEC-Registered Investment Adviser, or FINRA Broker-Dealer.
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Must be dated within 90 days and include required accreditation language.
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Use our template or DocuSign for verification.
Accreditation evidence for non-US individual investors
To verify accreditation as a non-US individual investor, you must meet US accreditation standards and provide one of the following three types of evidence.
Note: All financial requirements are in USD. Non-USD amounts will be converted using IRS annual average exchange rates. Documents must be in English or accompanied by a third-party attestation (see option #3).
1. Income evidence
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Income thresholds:
- Individual: $200K+ per year
- Joint (with spouse): $300K+ per year
- Must expect to meet the threshold in the current year as well.
- Documentation must be from the past two years.
- If using joint income for one year, both years must meet the $300K threshold.
- Accepted documents:
- Official tax documents (W-2s, 1040s, K-1s, or non-US equivalents).
- Pay stubs + employer verification letter may be accepted for the most recent year only (if tax docs are unavailable).
- Not accepted:
- Self-prepared documents or employer-issued statements.
2. Net worth evidence
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Net worth threshold: $1M+ USD, excluding primary residence.
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Documentation must be dated within the last 90 days.
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Liabilities:
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If an SSN is provided, a soft credit pull is attempted automatically.
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If no SSN, a consumer credit report from a major bureau in your region is required.
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Mortgage on a primary residence is excluded.
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Assets:
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Bank & brokerage statements (balance letters not accepted).
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Audited financial statements.
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Private equity holdings (must include a 409A valuation <12 months old).
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Crypto holdings (must show investor name).
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Assets held via an entity may require ownership documentation for prorating.
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Assets in irrevocable trusts generally cannot be considered.
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3. Third-party attestation letters (fastest method)
- Must be dated within 90 days and contain required accreditation language.
- Accepted issuers:
- Licensed Attorney
- Chartered Accountant (from your region)
Our accreditation verification process allows you to trigger an automated email to your verifier that is pre-populated with the required confirmation language for them to complete the verification. Alternatively, a DocuSign for third-party attestation of individual accreditation can be found here.