Reg D 506(c)
Security and Exchange Commission (SEC) established Regulation D in the 1980’s for the purpose of outlining a way of offering Securities privately. Over the last couple of years, the commission has undergone several changes as a result of the 2012 Jumpstart Our Business Startups Act. This act commonly known as the JOBS Act, was meant to help smaller companies in accessing capital formation by removing the barriers. They would do this by easily attracting investors through the introduction of Rule 506(c) and by the regulation of crowd-funding.
It is the easiest, least expensive and fastest-to-market private placements to the general public. eVest Technology has built an entire business platform around this exemption. The cornerstone of this Reg is the ability to Generally Solicit (Advertise) your offering to the general public while protecting your exposure to liability with only allowing accredited investors to actually fund their investments.
A little known fact about accreditation is that it was instituted in 1982 and the benchmarks have never changed since. That’s nearly 40 years with no impact from inflation. Now what has changed is the volume of accredited investors. In 1982, there were approximately 500,000 and today there are 11M+. That’s a dynamic worth pondering.
There is no maximum investment amount limits, only a Reg D form to be filed with the SEC, no traditional PPM’s required, no ongoing reporting, no pre-sale approval by the SEC, no audited financial statements, exempt from state registration and general advertising is permitted.