How much can you invest on an Equity Crowdfunding Portal?

Anyone, regardless of his or her annual income or net worth, may invest in a crowdfunding offering. However, the SEC imposes a limit on the amount a person can invest based on the individual’s income and net worth. The maximum investment is an aggregate limit, meaning it limits the total amount an individual may invest in all crowdfunding offerings every 12 months.

During any 12-month period, an investor is limited to investing:

• The greater of $2,000 or 5% of the lesser of the investor’s annual income or net worth, if either annual income or net worth is less than $100,000; or

• 10% of the lesser of the investor’s annual income or net worth, not to exceed $100,000, if both annual income and net worth are $100,000 or more.

Confused? Help is on it’s way over the next week or so when we will be releasing #SPARC the easy to use calculation tool

In the meantime, below is a flowchart I created to present the rules in a more logical easy to understand format:.

FINAL