Accredited investors are individuals or organizations that meet certain criteria set forth by securities regulations. In the United States, accredited investors include financial institutions, insurance companies, registered investment advisers, and certain high-net-worth individuals. To qualify as an accredited investor, an individual must have a net worth of at least $1 million, excluding the value of their primary residence, or an annual income of at least $200,000 ($300,000 for joint income) for the past two years. Accredited investors are able to access certain investment opportunities that are not available to the general public, such as private placements and hedge funds. These investments may carry higher risks, but also potentially offer higher returns.

Accredited investors are individuals or entities which are permitted under the law to invest in privately held securities which are not registered with a government regulatory body. Certain institutions like the SEC in the US, set criteria that investors need to meet.

Accredited investors have access to worlds of investment opportunities such as private equity and head funds as well as pre-ipo stocks. In addition, they have the right to bear the second level of risk in venture capital markets. That includes inexperienced investors who are body-protected from guesswork in venture capitalism while qualifying individuals are free to dominate in multi-faced and underlying financial markets.