Simply stated you can become an angel investor if you are an accredited individual.
An accredited individual has:
- An annual income exceeding $200,000 or $300,000 joint income for the last two years with expectations of earning the same or higher income in the current year OR
- A net worth exceeding $1 million either individually or jointly with their spouse OR
- A private business or organization with assets exceeding $5 million.
As of 2016, many provinces in Canada now allow non-accredited investors to invest in private markets – under specified limits such as:
- Any investor can invest up to $10,000 within any 12-month period without restriction into private market investments.
- Eligible investors* can invest up to $30,000 annually without suitability advice from a licensed investment professional or an exempt market professional.
- Eligible investors* can invest up to $100,000 annually with suitability advice from an exempt market professional.
*Where an eligible investor must have had a minimum of $75,000 of income personally in the past two years; income of $125,000 when combined with a spouse; or $400,000 of total net assets either alone or with a spouse.