For the complete documentation index, see llms.txt
For the complete documentation index, see llms.txt
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Reg D, rule 506(c)
This is a newer exemption released by the SEC on September 23rd, 2013. Like Rule 506(b), startups using this exemption can raise an unlimited amount of capital from Accredited Investors. But unlike 506(b) these startups can advertise their fundraising to the public.
There's a downside. Startups using 506(c) must verify that all their investors actually are accredited. This may require the investor to provide a letter from their lawyer, or it can be as burdensome as requiring tax returns or bank statements.
