what is the 2000 investor limit 
the 2 000 investor limit is a stipulation required by the securities exchange commission sec that mandates a company that exceeds 2 000 individual investors and with more than 10 million in combined assets must file its financials with the commission 1 according to sec rules a company that meets these criteria has 120 days to file following its fiscal year s end understanding the 2000 investor limitthe 2 000 investor limit or rule is a key threshold for private businesses that do not wish to disclose financial information for public consumption congress raised the limit from 500 individual shareholders in 2016 as part of the jumpstart our business startups jobs act and title lxxxv of the fixing america s surface transportation fast act the revised rules also specify a limit of 500 persons who are not accredited investors before public filing is required 2the prior threshold had been 500 holders of record without regard to accredited investor status congress began debating an increase in the limit in the wake of the 2008 recession and an explosion in online businesses some of which complained that they were growing so fast that the disclosure rules had become a burden at too early a stage of their lifecycle the jobs act also set up a separate registration threshold for banks and bank holding companies allowing them to terminate the registration of securities or suspend reporting if that class of shares is held by less than 1 200 people investor thresholds and equity crowdfundingthe jobs act revisions to sec rules helped facilitate the growth of crowdfunding platforms these platforms are able to raise money from individual investors online without providing detailed financial data the rules established limits on how much individuals can invest in sec approved crowdfunding platforms as a percent of the lesser of their annual income or net worth the individual limits for crowdfunding through an investment portal approved by the sec as of may 2017 3 4 these calculations don t include the value of your home examplefor example suppose that your annual income is 150 000 and your net worth is 80 000 jobs act crowdfunding rules allow you to invest the greater of 2 200 or 5 of 80 000 4 000 during a 12 month period 3 so in this case you can invest 4 000 over a 12 month period 