Crowdstarter is an SEC-registered funding portal for start up companies. HotClick has audited financial statements for only 2018. HotClick wants to raise $3,000,000 from 1500 non-accredited investors. Each investor will only invest a maximum of $2000.
A. $1,000,000 because the company only has one year of audited financial statements
B. $3,000,000 if there are over 500 accredited investors
C. $2,000,000 because the company has one year of audited financial statements
D. $4,000,000 if each investor invests less than $2000
Answer:C
Crowdstarter is an SEC-registered funding portal for start up companies. HotClick has audited financial statements for only 2018. HotClick wants to raise $3,000,000 from 1500 non-accredited investors. Each investor will only invest a maximum of $2000.
A. $1,000,000 because the company only has one year of audited financial statements B. $3,000,000 if there are over 500 accredited investors C. $2,000,000 because the company has one year of audited financial statements D. $4,000,000 if each investor invests less than $2000