Can Companies Use Both 506(c) and Title III Crowdfunding Simultaneously to Raise Capital? Yes! Companies Can Use Both 506(c) and Title III Crowdfunding to Raise Capital! Simultaneously even. Crowdfunding has been used in many contexts to raise money via the internet, one of which is the sale of securities. Prior to May 16, 2016 crowdfunding of securities was…
Reasonable Steps to Verify Accredited Investor Status. Rule 506(c) as adopted contains both a general requirement that issuers take “reasonable steps” to verify that purchasers are accredited investors, as well as a non-exclusive list of methods that can be used to satisfy this requirement. As originally proposed, Rule 506(c) did not mandate a particular verification process…
In 2012 Congress passed the JOBS Act, which mandated the creation of a new offering exemption under the Regulation D 506 program that would allow for general advertising of an offering to accredited investors. The rules went into effect on September 23, 2013. Prior to the passage of the JOBS Act (and the subsequent promulgation…
