Limits on How Much You May Invest
Title III limits how much you can invest every year – not only in any one company, or through any one Funding Portal, but also in all companies through all Funding Portals. These limits apply only to your investments under Title III (Regulation Crowdfunding), however.
Specifically, the maximum amount you can invest in all Title III offerings during any 12-month period is:
- If your annual income or net worth is less than $107,000, you may invest the greater of:
- $2,200; or
- 5% of the lesser of your annual income or net worth.
- If your annual income and net worth are both at least $107,000, you can invest the lesser of:
- $107,000; or
- 10% of the lesser of your annual income or net worth.
These limits apply to everyone, including “accredited investors.” They are adjusted periodically by the SEC, based on inflation.
You and your spouse may combine your incomes and assets for purposes of determining how much you may invest; although if you do so, you will be treated as a single investor for purposes of determining how much either of you may invest.
EXAMPLE : Investor Jones earns $107,000 per year and has a net worth of $150,000. Investor Jones makes his first Title III investment on December 1, 2017, investing $7,500 in Company X. On November 27, 2018, Investor Jones would like to make his second Title III investment, investing $5,000 in Company Y. But he can’t; he can invest only $3,200 in Company Y. But he could invest $3,200 in Company Y on November 27, 2018, and another $1,800 (actually, another $10,700, if he wanted to) on December 1, 2018.