Reg CF Investment Limits: How Much Can You Invest Under Regulation Crowdfunding?

Regulation crowdfunding investment limits depend on your income and net worth. If either your annual income or net worth is below $124,000, you can invest the greater of $2,200 or 5% of the lesser of those two figures across all Reg CF offerings in a 12-month period. If both exceed $124,000, the limit rises to 10% of the lesser figure, capped at $124,000 per year.

The Two-Tier Limit System

The SEC updated regulation crowdfunding investment limits in March 2021, raising the caps and simplifying the calculation. Here's how it works:

Tier 1: Income or Net Worth Below $124,000

If either your annual income or net worth is below $124,000, your 12-month Reg CF limit is the greater of:

• $2,200, or
• 5% of the lesser of your annual income or net worth

Example: You earn $80,000 and have a net worth of $60,000. The lesser figure is $60,000. Five percent of $60,000 = $3,000. Since $3,000 exceeds $2,200, your limit is $3,000 across all Reg CF investments in a rolling 12-month window.

Example: You earn $45,000 and have a net worth of $30,000. The lesser figure is $30,000. Five percent of $30,000 = $1,500. Since $1,500 is less than $2,200, your limit is $2,200.

Tier 2: Income and Net Worth Both Above $124,000

If both your annual income and net worth exceed $124,000, your limit is:

• 10% of the lesser of your annual income or net worth
• Maximum of $124,000 per 12-month period

Example: You earn $180,000 and have a net worth of $150,000. The lesser figure is $150,000. Ten percent = $15,000. That's your annual Reg CF limit.

Example: You earn $2 million and have a net worth of $1.5 million. Ten percent of $1.5 million = $150,000. But the cap is $124,000, so that's your maximum.

How Net Worth Is Calculated for Reg CF Limits

Your net worth for regulation crowdfunding investment limits uses the same SEC methodology as accredited investor calculations:

• Include: All assets (bank accounts, investments, retirement accounts, real estate, vehicles, personal property)
• Exclude: The value of your primary residence
• Subtract: All liabilities except mortgage debt up to the value of your primary home

If your home is worth $400,000 and your mortgage is $350,000, neither the home nor the mortgage enters the calculation. But if your mortgage exceeds the home value, the excess counts as a liability.

The 12-Month Rolling Window

Regulation crowdfunding investment limits apply over a rolling 12-month period, not a calendar year. An investment you made on June 15, 2025 counts against your limit until June 14, 2026.

This matters for active investors. If you invested $3,000 across Reg CF offerings in September 2025, that $3,000 rolls off your limit in September 2026. You don't get a fresh allocation on January 1.

The limit is aggregate—it covers all Reg CF investments across all platforms combined. Investing $2,000 on Republic, $1,000 on Wefunder, and $500 on StartEngine means you've used $3,500 of your annual limit regardless of which platforms you used.

Platforms Are Supposed to Track Your Limits

SEC rules require Reg CF platforms to have "a reasonable basis for believing" that investors haven't exceeded their limits. In practice, platforms ask you to self-certify your income and net worth, then calculate your limit based on what you report.

The problem: platforms can only track investments made on their own platform. Republic doesn't know what you invested on Wefunder. You're responsible for tracking your aggregate regulation crowdfunding investment limits across platforms.

If you exceed your limit, the legal consequences fall primarily on you. Platforms have a compliance obligation but limited visibility into cross-platform activity. The SEC hasn't aggressively enforced individual limit violations, but exceeding the cap technically puts you in violation of securities regulations.

Reg CF vs. Reg A+ Limits

A common confusion: regulation crowdfunding investment limits only apply to Reg CF offerings. Regulation A+ (Reg A+) offerings have different rules:

• Reg A+ Tier 1 (up to $20 million raise): No federal limit on individual investment amounts, though state limits may apply
• Reg A+ Tier 2 (up to $75 million raise): Non-accredited investors limited to 10% of the greater of income or net worth per offering, but this applies per offering, not in aggregate

Platforms like Fundrise use Reg A+ Tier 2, which means different (and generally more generous) limits than Reg CF. Read our Reg CF vs Reg A+ comparison for the full breakdown.

How the Limits Changed Over Time

The regulation crowdfunding investment limits have been adjusted since Reg CF's inception:

2016 (original rules): Maximum $2,200 for investors with income/net worth below $107,000. For investors above that threshold, 10% of lesser figure up to $107,000 maximum. Companies could raise up to $1.07 million.

2021 (current rules): Thresholds updated to $124,000. The 5% tier was added for lower-income investors. Company raise limit increased to $5 million. These changes substantially expanded both investor capacity and company fundraising ability.

The $124,000 figure is inflation-adjusted and may increase in future SEC updates.

Practical Strategies Within the Limits

Given the regulation crowdfunding investment limits, here's how to deploy your allocation effectively:

Diversify across 10+ deals. If your annual Reg CF limit is $5,000, invest $250-$500 per deal across 10-20 companies. Most startups fail—diversification is your only defense against total loss.

Combine Reg CF with Reg A+. Use your Reg CF allocation for startup equity on Republic or Wefunder, and invest separately in Reg A+ offerings (like Fundrise) that don't count against your Reg CF limit.

Prioritize follow-on rounds. If a Reg CF company you invested in raises again, consider whether to reinvest. Companies that survive to raise multiple rounds have already cleared a major hurdle. But this also concentrates your portfolio.

Track everything. Maintain a spreadsheet of every Reg CF investment, the amount, the date, and the platform. This is your record for staying within limits across platforms.

What Happens If You Become Accredited

Accredited investors are exempt from regulation crowdfunding investment limits. If you cross the $200,000 income or $1 million net worth threshold, Reg CF limits no longer apply to you. You can invest any amount in Reg CF offerings (up to the company's raise cap).

Learn about what constitutes Reg CF for a complete overview of the regulation.

Frequently Asked Questions

Do Reg CF limits apply to accredited investors?

No. Accredited investors are exempt from regulation crowdfunding investment limits. If you meet the SEC's accredited investor definition ($200K+ income, $1M+ net worth, or qualifying professional certification), you can invest without cap in Reg CF offerings. The limits only constrain non-accredited investors.

Are the limits per platform or aggregate?

Aggregate. Your regulation crowdfunding investment limits apply across all Reg CF platforms combined. Investing $2,000 on Republic and $2,000 on StartEngine means you've used $4,000 of your annual limit. Platforms can only track their own activity, so you must monitor your total across all platforms yourself.

What counts as "annual income" for calculating my limit?

Your gross annual income before taxes. This includes salary, wages, self-employment income, investment income, rental income, and any other income you'd report on your tax return. Use your most recent year's income or your expected current-year income—whichever you believe is more representative.

Can I invest more if my income increases mid-year?

Yes. If your income or net worth changes, your regulation crowdfunding investment limits adjust accordingly. You recalculate based on your current figures each time you make an investment. A raise or windfall could increase your limit immediately. However, be honest in your self-certification.

Do investments in Fundrise count against my Reg CF limit?

Generally no. Fundrise primarily uses Regulation A+ filings, which have separate limits. Only investments made under Regulation Crowdfunding (Reg CF) count toward your Reg CF limit. Always check the specific regulation under which an offering is made—it's disclosed in the offering documents.

What if I invested in a Reg CF deal and the company fails?

Lost investments still count against your historical limit for the 12-month window in which they were made. You don't get the allocation "back" if a company goes under. However, once the 12-month period passes, that investment no longer counts toward your rolling limit, and you can deploy fresh capital.

ModernAlts is an independent research platform. Nothing in this article constitutes investment, legal, or tax advice. Alternative investments involve risk including possible loss of principal.