KingsCrowd has launched new membership plans and pricing.

February 12, 2020

What is Regulation D 506(c)?

 

What is Regulation D 506(c)

Regulation D 506(c) is a new exemption that, like 506(b), allows startups to raise an unlimited amount of capital solely from accredited investors, with the main difference being these companies can advertise their raise to the public and raise it online. 

 

The downside, however, is that startups/platforms using 506(c) must verify all investors are qualified to invest under this exemption (compared to 506(b) where investors may self-certify). The burden lies on investors to provide proof they are accredited via tax returns and bank statements. You can find a detailed version of 506(c) and a list of verification methods that issuers of 506(c) may use here.

 

The KingsCrowd Advantage

With over 50 platforms like Republic, Wefunder, and SeedInvest, you can easily get overwhelmed with the small differences between each platform. Additionally, there are thousands of entrepreneurs hoping to get investors from across America to support their ideas and businesses. Accredited investor or not, KingsCrowd covers deal flow for both accredited and non-accredited investors. No matter who you are, we want to provide unbiased, institutional grade research and analytics for every company across all platforms. Signup for KingsCrowd here to access the best analysis and research on the online private markets.


28
About: Francis Vu

An investment professional with a background in private equity and venture capital having spent time conducting investments at VU Venture Partners and Pacific Oak LLC with a finance and management degree from Tulane University.

View Francis Vu's articles

Other Articles

How the JOBS Act Changed the Investment Climate

The Jumpstart Our Business Startups Act (JOBS Act) was signed… ...

3 Questions You Should Ask Before You Invest

Understanding a startup's product is the key to understanding its… ...

New Deals for the Week Ending 04/11/2021

All the latest online equity crowdfunding deals from across 20+… ...