Series 82: 1.1.3.1 Crowdfunding: Regulation CF

1. 1.1.3.1 Crowdfunding: Regulation CF 

Under the JOBS Act, Section 4(a)(6) also exempts companies that would like to raise up to $1 million of financing. This is often referred to as the crowdfunding exception. To be eligible, a company must be a domestic, non-reporting company that is not an investment company. This maximum amount has recently been raised to $1,070,000 to adjust for inflation. There is no limit on the number of investors permitted in a crowdfunding offering, though there is a limit on the maximum investment an individual can make. Those limits are defined on the following table (provided by the SEC): 

• Investor Annual Income	Investor Net Worth	Calculation	Investment Limit
  $30,000	$105,000	Greater of $2,200 or 5% of $30,000 ($