novus complete stage 1, page-71

My definition of Sophisticated Investor:

A cashed up investor who recognises an opportunity to take a significant stake in a company. Opportunity is exploited by going in through the company backdoor,to get that stake at big discount to what ordinary mug punters would have to pay in the market. Sophisticated investor assists company so that it doesn't have to show due diligence for it to raise capital this way. More rat cunning than sophistication.