Sophisticated Investor: A sophisticated investor is an individual who self-certifies that they meet one or more of the following criteria:
- They are currently in a position or had a previous job role for at least two years working in a professional capacity within the private equity sector, or within finance for small or medium-sized enterprises/businesses.
- The said person is a member of a network of business angel investors for at least six months.
- Made at least one investment with an unlisted company within the last two years.
- Currently a director of a company with an annual turnover of at least one million pounds.
- A person who has extensive experience within the field that they are getting involved in and understands the risks that are involved.
High net-worth individual:
A high net-worth individual would be classified as a person who self-certifies they have an annual income of over £100,000, or with net assets of £250,000 or more.