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 up to $2,500 per year in Reg CF offerings or up to 10% of the greater of their annual income or net worth per offering in Reg A offerings. If you want to invest more than $2,500 in Reg CF offerings and you are a non-accredited investor, there are restrictions on how much you can invest depending on your annual income and net worth. Netcapital follows SEC rules in determining how much investors can invest in and across offerings. There are no limits on how much-accredited investors can invest.
To find out if you are an accredited investor, you can visit our article: What is an accredited investor?
If you are non-accredited investor, For Reg CF offerings, if you are a non-accredited investor, the SEC limits how much you may invest in private companies in a given year. Reg CF investors may invest the greater of $2,500, or 5% of the greater of their annual income or net worth if the investor's net worth or annual income is less than $124,000. 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 $124,000. There is a $124,000 aggregate investment limit across all issuers during any 12-month period.
For Reg A offerings, non-accredited investors can invest up to 10% of the greater of their annual income or net worth in Tier 2 offerings. There are no investment limits for non-accredited investors in Tier 1 offerings, but these tend to be smaller in scope and may have more regulatory requirements.
Non-accredited investors should carefully assess their financial capacity before making investments, as these offerings often involve higher risks and longer investment horizons compared to more traditional investment opportunities.
| Annual Income | Net Worth | Calculation | 12-Month Reg CF Limit |
| $40,000 | $30,000 | Greater of $2,500 or 5% of $40,000 ($2,000) | $2,500 |
| $80,000 | $105,000 | Greater of $2,500 or 5% of $105,000 ($5,250) | $5,250 |
| $105,000 | $250,000 | Greater of $2,500 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 an annual $124,000 cap | $124,000 |
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.