Definition of Accredited Investors:
An individual who earns $200k or more annually OR a couple that earns $300k total annually. If they do not meet the income requirements, they can qualify using a net worth of over $1 million excluding their primary residence.
Definition of Sophisticated Investors:
A sophisticated investor is defined as someone that has superior knowledge of business and financial matters, and who has sufficient experience and knowledge to weigh the risks and merits of an investment opportunity.