This webinar explores what many call “accredited investor crowdfunding,”
effectively established by the JOBS Act in mandating the elimination of a ban on general advertising and solicitation in private offerings carried out pursuant to Rule 506 of Regulation D under the Securities Act of 1933, and authorizing the creation of Internet platforms specifically designed to facilitate compliant Rule 506 offerings to accredited investors.
Rule 506 of Regulation D permits private offerings by an issuer in unlimited amounts to an unlimited number of “accredited” investors, as that status is defined in Regulation D, and up to 35 nonaccredited investors, provided all conditions of the Rule, and Regulation D generally, are satisfied. Although private offerings under Rule 506 have long been a capital formation option
for small business and start-up issuers, a Regulation D prohibition on the use of general advertising or solicitation significantly limited the ability of issuers to identify and connect with interested accredited investors, while at the same time preventing those investors from easily identifying desirable investment opportunities.
The JOBS Act directed the SEC to eliminate this practical barrier to small business capital formation by removing the prohibition on general advertising and solicitation for Rule 506 private offerings provided sales are made only to accredited investors. The SEC responded with the addition of Rule 506(c), which did away with the ban on general advertising and solicitation for offers, but which imposed a stringent issuer verification requirement for accredited investor status of purchasers. Buttressing the expanded Rule 506(c) capital formation alternative, the JOBS Act provided for the creation and operation of Internet platforms for bringing together issuers and accredited investors. This webinar presents practical guidance in carrying out a compliant Rule 506(c) private offering and understanding the operation, and limitations, of the emergent JOBS Act permitted platforms through which private offerings to accredited investors may be accomplished.
This webinar is delivered in Plain English, understandable to you even if you do not have a background in the subject. It brings you into an engaging, even sometimes humorous, conversation designed to entertain as it teaches. And, it is specifically designed to be viewed as a stand-alone webinar, meaning that you do not have to view the other webinars in the series to get a lot out of it.
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