Accredited investor Question 100k

[Marc S.]

Hello,

I am in the process of investing in a Sponsorship deal.  As part of the process I had provided that my intention was to invest 100k, as a result I received a email from the company saying that because of the amount I must be an accredited investor.  Can I just loop hole around this and make my investment 99k, since I do not qualify to be an AI? 

Thank you! 

[Taylor L.]

Quote from @Eliott Elias:

What does that even mean? What makes someone an accredited investor  

 An Accredited Investor has earned over $200k per year for the past 2 years with the reasonable expectation they'll earn that this year ($350k for married couples) or has a net worth over $1 million excluding the value of their primary residence. There are a few other more niche qualifiers as well. It's a category defined by the SEC.

@Marc S. if this is a 506b or 506c deal I'm not sure what particular regulation they're referring to, just ask them to be more specific. This may be a business decision they've made. 506(b) has a limit of up to 35 Non Accredited investors, which means some sponsors set a higher or more strict minimum investment for Non Accredited investors. This sounds like a restriction in the other direction, though. They may have set other limits with regards to what percentage of an investor's net worth they're willing to accept as an investment.