Depending on your accreditation status and the type of offering you invest in, you may or may not have a limit on how much you can invest.
Anyone can invest at least $2,200 per year in Netcapital offerings. If you want to invest more than that, and you are a non-accredited investor, there are restrictions on how much you can invest depending on your annual income and your net worth. Netcapital follows SEC rules in determining how much investors can invest in an offering. There are no limits on how much an accredited investor can invest.
To find out if you are an accredited investor, you can visit our article: What is an accredited investor?
If you are a non-accredited investor, Section 4(a)(6) investors may invest the greater of $2,200, or 5% of the greater of their annual income or net worth, if the investor's net worth or annual income is less than $107,000. A Reg CF investor may invest 10% of the greater of their annual income or net worth if both their annual income and net worth are equal to or more than $107,000. There is a $107,000 aggregate investment limit across all issuers during any 12-month period. The following table can provide some examples of the limits on the amount of investment based on income and net worth:
|Annual Income||Net Worth||Calculation||12-Month Limit|
|$40,000||$30,000||Greater of $2,200 or 5% of $40,000 ($2,000)||$2,000|
|$80,000||$105,000||Greater of $2,200 or 5% of $105,000 ($5,250)||$5,250|
|$105,000||$250,000||Greater of $2,200 or 5% of $250,000 ($12,500)||$12,500|
|$200,000||$750,000||10% of $750,000 ($75,000)||$75,000|
|$1.2 million||$2 million||10% of $2 million ($200,000), subject to annual $107,000 cap||$107,000|
For non-accredited investors, you can calculate your annual income or net worth by jointly including the income or assets of your spouse or spousal equivalent. It is not necessary that property be held jointly. However, if you do calculate your income or assets jointly with your spouse or spousal equivalent, each of your crowdfunding investments together cannot exceed the limit that would apply to an individual investor at that annual income or net worth level.