Individual investors are limited in the amounts they are allowed to invest in all Regulation Crowdfunding offerings over the course of a 12-month period:
If either an investor’s annual income or their net worth is less than $107,000, then the investor’s investment limit is the greater of:
- $2,200 or
- 5 percent of the lesser of the investor’s annual income or net worth.
If both annual income and net worth are equal to or more than $107,000, then the investor’s limit is 10 percent of the lesser of their annual income or net worth.
During the 12-month period, the aggregate amount of securities sold to an investor through all Regulation Crowdfunding offerings may not exceed $107,000, regardless of the investor’s annual income or net worth.
Spouses are allowed to calculate their net worth and annual income jointly. This chart illustrates a few examples of the investment limits:
|
Investor Annual Income |
Investor Net Worth |
Calculation |
Investment Limit |
|
$30,000 |
$105,000 |
Greater of $2,200 or 5% of $30,000 ($1,500) |
$2,200 |
|
$150,000 |
$80,000 |
Greater of $2,200 or 5% of $80,000 ($4,000) |
$4,000 |
|
$150,000 |
$107,000 |
10% of $107,000 ($10,700) |
$10,700 |
|
$200,000 |
$900,000 |
10% of $200,000 ($20,000) |
$20,000 |
|
$1,200,000 |
$2,000,000 |
10% of $1,200,000 ($120,000), subject to $107,000 cap |
$107,000 |