Need Capital for Your Business? Access Over 200K Investors

In November 2020, the U.S. Securities and Exchange Commission voted to increase the amount companies can raise using investment crowdfunding platforms. The new rules went into effect in mid-March of 2021.

The SEC raised the limits on the amount of capital raised on crowdfunding platforms, from $1.07 million to $5 million in a 12-month period.

Before crowdfunding became popular, only accredited investors could raise capital in private companies. Accredited investors are investors by the SEC standards earn $200,000 a year, $300,000 for a couple, or have $1 million in assets, not including their home.

Most small investors could not qualify to invest in startups. With crowdfunding and sites like StartEngine, all of this has changed. Now, small business owners can raise capital using upper middle-income investors who have an interest in their company.

The SEC says: If either your annual income or your net worth is less than $107,000, then during any 12-month period, you can invest up to the greater of either $2,200 or 5% of the greater of your annual income or net worth. If both your annual income and your net worth are equal to or more than $107,000, then during any 12-month period, you can invest up to 10% of annual income or net worth, whichever is greater, but not to…