Under Investment Crowdfunding rules, anyone over the age of 18 can invest at least $2,200 every 12 months. If you would like to invest more than $2,200 in any given year, you will need to calculate the maximum amount based on your income and net worth. Below is a summary of how to calculate your annual maximum investment amount. Note that the Investment limits do not apply to accredited investors.

You can also click on the link below to go directly to the SEC Investor Bulletin where you will find the complete rule and some sample scenarios.

Calculating your annual maximum investment crowdfunding amount

As of March 15, 2021, accredited investors are not limited in the amount they can invest in regulation crowdfunding offerings.

All other investors are subject to the caps, described below:

If you are not an accredited investor you calculate the maximum you can invest in any 12-month period as follows:

(i) If annual income or net worth is less than $124,000, you can invest the greater of $2,500, or 5 percent of the greater of the investor’s annual income or net worth.

(ii) If annual income and net worth are both at least $124,000, you can invest the lesser of $124,000 or ten percent of the greater of the investor’s annual income or net worth.

Examples:

Let’s say that you want to invest in an offering and your annual income is $80,000 and your net worth is $200,000. In this instance, the maximum that you could invest in a 12-month period is $10,000 ($200,000 x .05 = $10,000). Because annual income is below $124,000, the maximum is 5% of $200,000 (the greater number).

Let’s say that you want to invest in an offering and your annual income is $150,000 and your net worth is $130,000. In this instance, the maximum that you could invest in a 12-month period is $15,000 ($150,000 x .1 = $15,000). Because both annual income and net worth are over $124,000, the maximum is 10% of $150,000 (the greater number).

Note that non-accredited investors are capped at $124,000 in a 12-month period, regardless of income or net worth.

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