Venture Glossary

A Non-Accredited Investor is an investor who fails Rule 501 of Regulation D of the SEC’s accredited investor test. In other words, the investor has less than a million dollars in net worth a receives less than $200,000 a year (or $300,000 with a spouse) in income. Many states’ Blue Sky laws place limits on the number of non-accredited investors that can be included in a financing round, or companies must make more disclosures.