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In order for an individual to qualify as Accredited, an investor must typically meet at least one of the following criteria:
- Any natural person who has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year.
- Any natural person who has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
- A Sophisticated Investor is a non-accredited investor who is defined as someone that has superior knowledge of business and financial matters.