Question

Kim wants to invest in Beta Company’s crowdfunding equity fund. In the current 12-month period, Kim has invested $25,000 in other equity funds registered under Regulation Crowdfunding. Her annual income is $900,000, and her net worth is $1,500,000. How much can she invest in Beta’s crowdfunding equity fund

Answer 1

$65,000

Step-by-step explanation:

According to Regulation Crowdfunding, an individual can invest 10% of their annual income across all crowdfunding offerings in a 12-month period.

Kim's annual income = $900,000

Kim's investing limit on crowdfunding offerings = $900,000

Since Kim haad already invested $25,000 in another offering, she can only invest $65,000 in Beta's crowdfunding (= $90,000 - $25,000).