Your limit depends on a combination of your net worth and your annual income and is automatically calculated for you when you begin the investment process.
If either your annual income or your net worth is less than $107,000, you can invest up to the greater of either $2,200 or 5% of the greater of your annual income or net worth during any 12-month period.
If both your annual income and your net worth are greater than $107,000, you can invest up to 10% of annual income or net worth, whichever is greater; up to a maximum of $107,000 during any 12-month period.
The following table is an example of how a Reg CF limit is calculated:
These limits apply to everyone except “accredited investors". For accredited investors, this limit has been removed.
The definition of an “accredited investor” can be found in Rule 215 and Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (Securities Act).
During the investment transaction process, investors will have the opportunity to request to invest as an accredited investor. Any investor who invests under the accreditation rules will be required to provide verification demonstrating qualifications prior to their investment commitment being accepted. An acceptable form of verification is written confirmation from an eligible third-party that reasonable steps have been taken to verify that the purchaser meets the definition of an Accredited Investor within the prior three months. A sample verification form and additional information will be provided to accredited investors during the transaction process.