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I am interested in investing in Startups via Angellist or other similar programs. How do Companies and individuals not based in the United States become a qualified Accredited Investor by the SEC?

What information do I have to provide and to whom?

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Here are the SEC requirements:

The federal securities laws define the term accredited investor in Rule 501 of Regulation D as:

  • a bank, insurance company, registered investment company, business development company, or small business investment company;

  • an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;

  • a charitable organization, corporation, or partnership with assets exceeding $5 million;

  • a director, executive officer, or general partner of the company selling the securities;

  • a business in which all the equity owners are accredited investors;

  • a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;

  • a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or

  • a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.

No citizenship/residency requirements.

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  • Do non US residents need to go through the accreditation process or can they be unaccredited and invest in startups? Thanks
    – blue14
    Jul 14 '14 at 10:58
  • 1
    @blue14 I'll repeeat - there's no residency/citizenship requirement.
    – littleadv
    Jul 15 '14 at 2:30
  • The same way like for all other things- call your broker, fill out form. Mine asks me all sorts of details regularly to update their paperwork ;)
    – TomTom
    Oct 28 '18 at 17:29

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