How much you can invest in any 12-month period depends on a combination of your net worth (less the value of your primary residence if you own a home) and your annual income.
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 lesser of your annual income or net worth during any 12-month period.
If both your annual income and your net worth are equal to or more than $107,000 then you can invest up to 10% of annual income or net worth, whichever is lesser up to a maximum of $107,000 during any 12-month period.
The following table provides a few examples:
|Annual Income||Net Worth||Calculation||12-month Limit|
|$30,000||$105,000||greater of $2,200 or 5% of $30,000 ($1,500)||$2,200|
|$150,000||$80,000||greater of $2,200 or 5% of $80,000 ($4,000)||$4,000|
|$150,000||$107,000||10% of $107,000 ($10,700||$10,700|
|$200,000||$900,000||10% of $200,000 ($20,000||$20,000|
|$1,200,000||$2,000,000||10% of $1,200,000, subject to cap||$107,000|
See more examples in the SEC Investor Bulletin.
You can calculate your annual income or net worth jointly with your spouse’s income or assets. Your combined investment limit will then be the same as that of a single investor with your combined annual income or net worth level.
Your net worth is the sum of all your assets, minus all your liabilities. For purposes of crowdfunding, the value of your primary residence should not be included in your assets, and any mortgage or other loan on that residence does not count as a liability (up to the fair market value of your home).
The following table provides a few examples of net worth calculations for the purposes of determining crowdfunding investment limits:
|Jane Doe||John Smith||James Lee|
(Not included except for related liabilites below):
|Home equity line:|
|More than 60 days old||—||$20||—|
|Less than 60 days old||—||$10||—|
|Total included assets||$190||$190||$190|
|Student and car loans||$100||$100||$100|
|Portion of mortgage underwater||—||—||$30|
Home equity line
(Less than 60 days old)
|Total included liabilities||$120||$130||$150|
If you are unsure how to calculate your net worth or income, the SEC Investor Bulletin provides more details. Please feel welcome to contact Republic for help, or ask your accountant or financial adviser.
Republic does not verify information provided by companies on this Portal and makes no assurance as to the completeness or accuracy of any such information. Additional information about companies fundraising on the Portal can be found by searching the EDGAR database.