Glossary Term
Accredited Investor
Definition
An Accredited Investor is an individual or entity that meets specific financial criteria established by regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), allowing them to invest in unregistered securities. These criteria often include income thresholds, net worth requirements, or professional certifications, reflecting the investor’s financial sophistication and ability to bear higher risks associated with such investments.
Relevance to the MedTech Industry
Accredited Investors play a critical role in funding early-stage MedTech startups and innovation by providing capital through private placements, venture rounds, and other investment vehicles. Their involvement helps bring new medical devices and technologies to market by filling funding gaps often left by traditional lenders or public markets.
Additional Information & Related Terms
Venture Capital (VC) Often involves investments from accredited investors in MedTech startups.
Seed Funding Early-stage funding frequently sourced from accredited investors.
Series A, B, and C Rounds Successive funding rounds often involve accredited investors.
Exit Strategy Accredited investors typically seek returns through IPOs, mergers, or acquisitions.