What is the maximum amount a company can raise via crowd-sourced funding in one year?

The maximum amount a company can raise via crowd-sourced funding in one year is typically set at $5 million. This limit is established under regulations that govern crowdfunding to ensure that while companies can access funding to grow their businesses, there are also safeguards in place for investors regarding risk exposure and investment limits.

Crowd-sourced funding, especially through platforms designed for startups and small businesses, facilitates collective investments from multiple individuals, which can significantly help in terms of capital inflow. The $5 million cap is designed to strike a balance between giving companies the ability to raise substantial funds while protecting investors from excessive risk.

It's important to note that different countries may have specific regulations and limits regarding crowdfunding, but in many jurisdictions, the $5 million threshold is a common standard. This level of funding provides businesses with a reasonable opportunity to expand without overly burdening individual investors or creating an unmanageable level of risk.