cryptocurrency, bitcoin, ethereum, crypto
In traditional and crypto venture capital funds and hedge funds, many private securities investments are restricted to “accredited investors." This is done to avoid SEC registration via Regulation D ("Reg D"), for example.
But what does "accredited investor" mean?
Accredited Investor Definition
Rule 501 of the Securities Act of 1933 defines accredited investor as:
Natural Person Net Worth Determination
Rule 501 further defines how to calculate one’s net worth:
The above three calculations do not apply if, in connection with a purchase of securities in accordance with a right to purchase such securities: