At Cherub, we connect you with founders who are typically fundraising for private companies. Generally, these investment opportunities aren’t available to the general public. To invest in the majority of the Cherub startups fundraising, you need to be an accredited investor because it’s a legal requirement set by the SEC.
These rules are in place to make sure that people investing in private companies or startups have the financial ability to take on the potential risks that come with it.
Accredited investors get access to exclusive deals—like startup investments, venture capital funds, and more. By keeping these opportunities limited to accredited investors, we help protect both you and the founders, ensuring everyone has the right financial background to navigate these types of investments.
What does it take to be an accredited investor?
To qualify as an accredited investor (according to the SEC), you’ll need to meet at least one of the following:
Income:
You’ve earned at least $200,000 a year (or $300,000 combined with a spouse/partner) for the past two years, and expect to hit that number again this year.
Net Worth:
Your net worth is over $1 million (either alone or with a spouse/partner), not including your primary home.
Professional Certifications:
You hold certain financial licenses like Series 7, 65, or 82.
Entity Requirements:
You’re part of a company or entity with assets over $5 million, or all the owners of the entity are accredited investors.
Family offices also qualify if they manage over $5 million in assets and have someone knowledgeable in charge of investments.
These rules ensure that investors have the financial experience to handle the ups and downs that can come with private investments.