An accredited investor is an individual, entity, or financial institution with a special financial status that enables them to invest in certain opportunities that are not legally available to ordinary investors. Across the world, and in Singapore, there are various regulations in place to protect both those who qualify for the status of an accredited investor, as well as businesses who may utilise their capital.
While accredited investors usually choose investment opportunities such as hedge funds, accredited investors can also invest in venture capital and angel investments. These are a unique type of investments for businesses that are starting or rapidly growing private companies that need to build their operations.
The role an accredited investor can play in the local economy, shaping businesses and providing capital for those who may not qualify for the traditional route, allows them both a range of risk and reward.