Accredited investor is an individual or entity allowed to participate in certain unregistered securities offerings. For individuals, this typically means:
Having an annual income exceeding $200,000 ($300,000 for joint income) for the last two years, with expectations of the same or higher income in the current year
Having a net worth over $1 million, either individually or jointly with a spouse, excluding the primary residence
SOPHISTICATED investor is generally considered to be an individual who:
Has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment
May not meet the specific financial thresholds for accredited investor status but possesses significant market experience and knowledge
