Limits on How Much You May Invest

The SEC sets a limit on how much you may invest in Title III offerings within a rolling 12-month window. This limit depends on whether you are an “accredited investor”, your annual income, and your net worth.

After logging into the BaseNote app, you can find a utility under “Settings”->“Investor Settings” to help calculate your limit.

Accredited Investors

If you are an “accredited investor,” you can invest as much as you want in offerings under Title III. The term “accredited investor” includes:

Investor Johnson earns $208,000 per year over the previous two years, and expects to maintain the same income level this year. Because she qualifies as an accredited investor, she may invest as much as she wants in Title III Offerings.

Non-Accredited Investors

If you are not an accredited investor, 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, if you are not an accredited investor the maximum amount you can invest in all Title III offerings during any period of 12 months is:

These limits 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.

Investor Smith earns $107,000 per year and has a net worth of $150,000. Investor Smith makes his first Title III investment on December 1, 2016, investing $7,500 in Company X. On November 27, 2017 Investor Smith 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, 2017 and another $1,800 (actually, another $10,700, if he wanted to) on December 1, 2017.