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506c Archives - Regulation D and PPM Lawyers

While Regulation D possesses significant differences from crowdfunding, there is no reason that an issuer cannot leverage both approaches.  In addition, several crowdfunding platforms blend the regulation and general solicitation under rule 506(c).  The following provides a brief summary of some of the more popular crowdfunding platforms out there for business ventures.      

With most crowdfunding, funders can “donate” monies to a startup or going business concern that is raising capital. Critically, however, they won’t get a stake in that company in exchange. As a result, those funders are “technically” not “investors” and technically not governed by federal and state securities laws. The JOBS ACT’s goal (among others)

With 506(c) and a variety of other major securities overhauls, the U.S. Securities and Exchange Commission (SEC) has loosened many of the most restrictive regulations addressing Regulation D private placement offerings. Now more than ever, private securities from private issuers will be making their way to the portfolios of individual and institutional investors alike. And

With private placement clients I often get the question “Why Can’t I get non-accredited investors into my Rule 506(b) round, when the rule gives me the right  to have up to 35 non-accredited investors?” Yes, it’s true. Rule 506(b) says you can have up to 35 non-accredited investors.   However, the devil is always lurking in

With the creation of new Rule 506(c) under the JOBS Act, private placement issuers are now authorized to leverage general solicitation, provided they verify that each purchaser in the offering is an accredited investor.  In theory, this is a very powerful concept, however there is still some confusion as to how that verification standard works

Following the passage of the Jobs Act, none can deny the tectonic shift in securities laws and the government’s approach to capital formation across the board.  Accordingly, the ubiquitous Form D is now the target of additional proposed rules that could affect how it will be deployed.  Moreover, these proposed amendments can affect the strategies

At this point, it’s no secret that Regulation D Rule 506(c) (as opposed to the more traditional 506b) enables issuers to engage in general advertising and solicitation of accredited investors.  The rule offers, to a large extent, a “best of both worlds” opportunity by maintaining the main value proposition of a private placement offering under

While new Rule 506(c) promises to transform the regulation D fundraising landscape, there are the so called “bad actor” companion rules that any one raising money pursuant to 506(c) must pay close attention to. In particular, on July 10, 2013, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to Rule 506 of the Securities

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