Are you an Accredited Investor? Qualified Individual Investors in the Biotechnology Sector

Certain restricted offerings such as venture capital, hedge funds and private equity investments are required by the Security and Exchange Commission (SEC) to be only presented to qualified and financially sophisticated investors, known as accredited investors. In order to qualify as an accredited investor an investor must meet one of the following expectations:

• An individual 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.
• Have a net worth exceeding $1 million, either individually or joint with their spouse, at the time of purchase.
• A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
• A business in which all the equity owners are accredited investors.