In the world of entrepreneurship, a vital factor in whether or not a startup achieves success or fails, is its ability to access capital. The Jumpstart Our Business Startup Act (i.e., JOBS Act) came on the scene in 2012, and quickly changed the landscape for startups...
Recently, the SEC has made changes to the qualifications required to obtain accredited investor status that now allows more investors to participate in this exclusive investing category. Not only can potential investors qualify under the financial criteria – income or...
Achieving accredited investor status is not part of an extensive application or submission process. It is not similar to applying for a mortgage or other type of bank loan. To be recognized as an accredited investor, individuals, their spouses and spousal equivalents,...
The main difference between Rule 506(b) and Rule 506(c) of the JOBS Act, Title II is general solicitation and advertising. Under a 506(b) offering, general solicitation and advertising is prohibited. The investor under this exemption must have a previous...
General solicitation involves public marketing of a capital raise. Regulation D, Rule 506(b) forbids the use of general solicitation in securities marketing. An example of general solicitation is informing prospective investors in a news publication about an offering...
