Resources/ Updates


How Much Money Can a Crowdfund Investor Fund? Or a Crowdfund Raise?

The SEC’s Office of Investor Education and Advocacy issued an Investor Bulletin to advise investors about the inflation-adjusted increase in the investment limits for securities-based crowdfunding.  Crowdfunding solicits small investments or contributions from a crowd of people, most typically via the Internet.

As mandated by the JOBS Act of 2012, the SEC adopted rules to facilitate securities-based crowdfunding.  2015 crowdfunding rules enabled the general public to participate in capital raising activities of start-ups. But there are risks.  Will the venture succeed?  Is my investment liquid?   Explore the risks to securities-based crowdfunding in the Investor Bulletin: Crowdfunding for Investors

New Investment Limits in Crowdfunding

Per the JOBS Act, the annual dollar amounts an investor can invest in crowdfunding must be adjusted for inflation every five years.  Here are the inflation adjusted limits for investments during any 12-month period.

  • 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.
  • If both your annual income and your net worth are equal to or more than $107,000, you can invest up to 10% of annual income or net worth, whichever is lesser, but not to exceed $107,000.

Joint Calculation

Include your spouse’s income or assets when calculating your annual income or net worth.  But when you do calculate jointly, each of your crowdfunding investments combined may not exceed the limit for an individual an that annual income or net worth level.

Net Worth

Add up all your assets and subtract all your liabilities.  The sum is your net worth.  But note, the value of your primary residence is not included.  The mortgage is another story.

  • A mortgage or loan on your home does not count as a liability up to the fair market value of your home.
  • Any loan amount beyond the fair market value counts as a liability under the net worth test.
  • If within 60 days prior to your investment, your home loan increases, whether up to or beyond the fair market value of your home, it will count as a liability.

Crowdfunding Raise Adjustments

The maximum amount a company can raise under securities-based crowdfunding is now $1.07 million in any 12-month period.  The offering amounts that trigger the financial statement disclosure requirement are also adjusted for inflation.

Here are the inflation-adjusted threshold amounts and the financial disclosures required:

  • $107,000 or less:
    • financial statements and specific line items from income tax returns, both certified by the principal executive officer of the company.
  • $107,000.01 to $535,000:
    • financial statements reviewed by an independent public accountant and the accountant’s review report.
  • $535,000.01 to $1.07 million:
    • for first time crowdfunders only, the financial statements must be reviewed by an independent public accountant and the accountant’s review report.
    • For others, the financial statements must be audited by an independent public accountant and the accountant’s audit report.

Related Resources

Investor Bulletin: Crowdfunding Investment Limits Increase ~ May 5, 2017

Investor Bulletin: Crowdfunding for Investors ~ May 10, 2017

Funding portals registered with FINRA to act as crowdfunding intermediaries

About the SDDco Group

Formed in 1952, the SDDco Group ( delivers outsourced professional support to the financial services and technology sectors. Our menu of professional services includes accounting, regulatory and tax compliance, AML testing, brokerage hosting and supervision, as well as assuming designated FinOp, CCO, and CFO roles.  To connect with SDDCO:

  • Call Us:  212-751-4422
  • Email Us:
  • Ask Us:  contact form


SDDco specializes
in two industries.

Our know-how and our network supports the financial services & tech industries.

We hold the right training and licensures to keep you in step and mitigate risk.

Our Credentials


SDDco supports
industry leaders.

We oversee back office functions so you can focus on your own clients.

Major banks, private funds, RIAs, BDs, and tech startups choose us.

Our Clients


SDDco is as good
as its great people.

Our CPAs, FinOps and
consultants are licensed,
experienced professionals.

Partner with us for start-ups and for ongoing accounting, compliance and tax work.

Our People


SDDco performs
services onsite.

Outsourced support with
SDDco isn’t out of sight.

We work in your space and for your team on a regular basis. Engage the expertise without the fulltime hire.

Our Praises


SDDco observes
AICPA principles.

Our inaugural firm began
when two CPAs opened
a NYC office back in 1952.

We faithfully maintain the CPA standards: integrity, competency, confidentiality….

Our Group