If you’re not sure if you’re an accredited investor and still more unsure why you might even want that particular designation, it’s something you should explore. Accredited investors enjoy a special status in the eyes of the Securities and Exchange Commission and are considered more knowledgeable accredtied investor advantagesabout Investment opportunities as well as the risks associated with them.

In short, a company or an individual can approach an accredited investor about an investment opportunity without the company having to register their offerings with the SEC. That means an accredited investor has more investment opportunities available to them that the general investment public may not have. You can have the opportunity to invest in a startup as an angel investor. An angel investor is someone who helps finance a growing business while taking a partial ownership in the venture. When companies obtain angel financing, they avoid having to register their businesses before accepting investment from third parties.

The SEC allows individuals, growing companies and startups to solicit funds from accredited investors providing them with easier access to capital. An investor with an accredited status is assumed by the SEC that the investor is more sophisticated financially and doesn’t need the sort of consumer protection status that other, less knowledgeable investors retain.

This so-called “non-public offering” provides accredited investors with access to investment possibilities while providing expansion or operating capital to businesses in exchange for a share in the company. Accredited investors understand their special status and businesses seek this class of investor out and keep them in their database when additional or startup capital is needed. EquityBuild for example buys and sells investment real estate and provides accredited investors with several investment opportunities throughout the year. There is no fee or test that one needs to pass in order to be recognized as such only that the company making the solicitation has made a good faith effort to determine if an individual is or is not an accredited investor.