Definition

Accredited investor

A person who meets income or net-worth thresholds permitting them to invest in private securities — a gatekeeping standard Joris argues locks regular people out of the best returns.

From the episode “$1.6 Billion of Equity On-Chain. Here Is Why.”

How founders on the podcast use it

A legal classification under US securities law (SEC Regulation D) that designates individuals or entities permitted to participate in private securities offerings not registered with the SEC. The primary thresholds for individual accredited investor status are: net worth exceeding $1 million (excluding primary residence) or annual income exceeding $200,000 individually ($300,000 with a spouse) for the past two years. The accredited investor standard was established after the 1929 stock market crash, based on the theory that individuals with substantial net worth have greater financial sophistication and can absorb the risk of unregistered securities. Greg Brogger traces the standard's origins to the Great Depression and notes the philosophical tension: it protects unsophisticated investors from potential fraud in private markets, but also bars ordinary investors from the private growth companies that represent 70% of tech companies worth more than $1 billion - the same growth they cannot access through public market index funds.

Turn Illiquid Equity Into Real Wealth

Hear it on the podcast2 episodes

$1.6 Billion of Equity On-Chain. Here Is Why.Turn Illiquid Equity Into Real Wealth

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