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Inflation provides big boost to crowdfunding limits

September 29, 2022

The Securities and Exchange Commission (SEC) recently published statutorily-required five-year inflation adjustments for various limits placed on crowdfunding, and the increases are substantial.

The new revenue ceiling for an eligible company is increasing from $1.070 billion to nearly $1.235 billion. The total cap on the amount that can be raised via crowdfunding remains at the $5 million level added just last year, but the thresholds for new offering that require independent financials or a full audit have been increased to $618,000 and $1.235 million, respectively. For individuals, the changes mean that individuals with annual income or net worth under $124,000 can invest up to the greater of $2,500 or 5%. During 2021, crowdfunding offerings raised more than $1 billion — exceeding the total raised from 2016-2020.

sec, crowdfunding