Equity Crowdfunding for Non-Accredited Investors: Unlocking Investment Opportunities

Jeff "fuzzy" Wenzel
3 min readAug 3


Photo by Alexander Grey on Unsplash

Equity crowdfunding has transformed the investment landscape, opening the door to non-accredited investors and allowing them to participate in opportunities previously reserved for the wealthy elite. But what exactly is equity crowdfunding, and how does it apply to non-accredited investors? Let’s delve into this fascinating topic, breaking down the legal framework, investment limitations, and examples of successful campaigns.

What is Equity Crowdfunding?

Equity crowdfunding is a method of raising capital where companies sell shares or ownership stakes to a broad audience. Unlike traditional crowdfunding, where backers may receive a product or service, equity crowdfunding offers an ownership interest in the company.

Who are Non-Accredited Investors?

In the investment world, an “accredited investor” typically refers to an individual with substantial financial assets or income. In the United States, the criteria for accredited investors include a net worth exceeding $1 million (excluding the value of a primary residence) or annual income over $200,000 for the past two years.

Non-accredited investors, on the other hand, are those who don’t meet these financial thresholds. They represent the majority of the population, and for the longest time, their investment opportunities were severely limited.

The JOBS Act and the Democratization of Investing

The Jumpstart Our Business Startups (JOBS Act) of 2012 revolutionized the landscape by easing regulations around crowdfunding and allowing non-accredited investors to participate in equity crowdfunding.

Regulation Crowdfunding (Reg CF)

Under Title III of the JOBS Act, non-accredited investors can now invest in equity crowdfunding campaigns through registered funding portals. Regulation Crowdfunding (Reg CF) sets forth specific rules governing these investments:

  • Investment Limits: How much an unaccredited investor can invest depends on their annual income and net worth. If either their annual income or net worth is less than $107,000, they can invest the greater of $2,200 or 5% of the lesser of their annual income or net worth in a 12-month period. If both annual income and net worth are equal to or more than $107,000, they can invest up to 10% of the lesser of the two, but not more than $107,000 in a 12-month period.
  • Issuer Limits: Companies can raise up to $5 million in a 12-month period through Reg CF.

These rules ensure that non-accredited investors can participate without taking on undue financial risk.

Real-World Examples

1. BrewDog

BrewDog, a Scottish craft beer company, raised over $30 million through equity crowdfunding, allowing thousands of non-accredited investors to own a stake in the company.

2. Elio Motors

Elio Motors, an American startup aiming to disrupt the automotive industry, successfully raised $17 million through a Reg CF campaign.

Risks and Considerations

Equity crowdfunding offers exciting opportunities but comes with risks. Investments can be illiquid, and there may be limited information about the company. Diversification and thorough research are key to managing these risks.


Equity crowdfunding for non-accredited investors represents a landmark shift in the democratization of finance. It has opened doors, allowed individuals to support innovative startups, and provided access to potential financial growth previously reserved for the wealthy.

By understanding the legal landscape and being mindful of investment limits and risks, non-accredited investors can become part of the exciting world of equity crowdfunding. Whether it’s supporting the next big tech startup or a local business with a passionate vision, the opportunities are abundant and waiting to be explored.

Note: The information provided here is intended for educational purposes and does not constitute financial or legal advice. Always consult with a financial or legal professional to understand the implications of investing in equity crowdfunding.



Jeff "fuzzy" Wenzel

Startup Fundraising Re-Imagined 🤔 Retail Investor 💰 Startup Advisor 🏆 Innovation Enthusiast 🥳