Investing through Mainshares is restricted to accredited investors only.
The "Accredited Investor" standard is set by the SEC and defines who is able to invest in certain private securities offerings.
The SEC website contains the full definition of an Accredited Investor under U.S. law.
Most small businesses only raise money from accredited investors. All private placements on Mainshares only raise money from Accredited Investors.
Individuals (i.e., natural persons) may qualify as accredited investors based on wealth and income thresholds, as well as other measures of financial sophistication. Eligibility is established for:
- Individuals with annual income over $200,000 USD (individually) or $300,000 USD (with a spouse or spousal equivalent) in each of the last 2 years and an expectation of the same this year
- Individuals with a net worth over $1,000,000 USD, excluding the primary residence (individually or with spouse or partner)
- Individual with certain professional certifications (FINRA Series 7, Series 65, or Series 82 license)
Entities may qualify as accredited investors based on their structure or asset composition. Eligibility is established for:
- An institution with over $5,000,000 USD in assets, such as a venture fund or a trust
- Family offices with over $5,000,000 USD in assets under management and their “family clients,” as each term is defined under the Investment Advisers Act
- An entity made up entirely of accredited investors
- SEC- and state-registered investment advisers
- Exempt reporting advisers filing with the SEC
- Any entity with over $5,000,000 USD in investments, given it was not formed for the specific purpose of investing in the securities offered
- A rural business investment company (RBIC)