Rule 506(c) of Regulation D (“Reg. D”) of the federal Securities Act of 1933 (“Securities Act”) offers issuers the tremendous advantage of being able to generally solicit investors to sell their securities without having to register those securities with the Securities and Exchange Commission (SEC).
Being able to advertise and market your 506(c) offering is exciting. Marketing generates leads and helps raise capital to fund your endeavors.
And yet, marketing a Rule 506(c) securities offer can be a daunting task.
Why?
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What’s better than a high-paying job? How about a high-paying job that is actively looking for recruits? Kicking off your career, or pivoting, to a high-paying job and honing in-demand skills can set you up for success and also help you enter the private investing industry. Annual income is one factor that can help you achieve accredited investor status.
Currently, the SEC requires accredited investors to have income exceeding $200,000 USD in each of the two most recent years or joint income with a spouse or spousal equivalent exceeding $300,000 USD for those years, as well as a reasonable expectation of the same income level in the current year. There are other ways to verify accredited investor status, but the income test is rather straightforward. Read more…
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Raising capital to start a company, fund business opportunities, or expand an ongoing business is a continuing concern for many entrepreneurs, founders, owners, small companies, and start-ups.
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Understanding Regulation D (or “Reg. D”) exemptions is a must for investors who want to be able to make intelligent investment decisions and protect themselves (to the extent possible) from investment scams and fraud. In this quick guide to understanding Regulation D for investors, we will touch on some of the basic requirements of Rule 506 exemptions. We will also explain why being an accredited investor is so important and how you can become verified as an accredited investor. Finally, we’ll touch on what it means to purchase restricted securities pursuant to a Reg. D offering.
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On March 15, 2021, the SEC (Securities and Exchange Commission) instituted the brand-new Rule 148 that allows entrepreneurs to communicate more widely regarding investment opportunities in their funds during “Demo Days”. This is a major expansion to the existing “Demo Days’ framework. In essence, the SEC now allows specific communication that no longer is considered a general solicitation. This frees up the reins a little bit on entrepreneurs so they no longer need to tiptoe around conversations with potential investors. In the past entrepreneurs would need to hold off raising funds and/or use Rule 506(c) and comply with finding accredited investors in order to start on a private raise. Rule 506(c) allows issuers to generally solicit investors, however, not all start-up companies have the resources available to verify investors as accredited investors, which is a requirement to use the Rule 506(c) exemption.
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There are many benefits to becoming an accredited investor, namely, the ability to participate in nonpublic and limited offerings, including most offerings under Regulation D. Not just anyone can achieve such status, though. The Securities and Exchange Commission (SEC) has certain standards someone must first meet in order to participate in the private investing industry, including offerings that utilize Rule 504 and Rule 506.
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In a world of great income inequality, it is important to recognize why some people have a great amount of wealth and some still live paycheck to paycheck. To understand these concepts we simply need to look at the 5, 15, and 80 percent rules. Whichever category you might fall under, one might elevate themselves into a better bracket by utilizing Rule 506(c) offering only available to certain wealthy individuals or individuals with financial acumen.
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Technological advancement especially in the areas of automation and artificial intelligence has changed the working landscape. To keep up with changing job requirements, what skills are necessary for the future of work? Human-centric skills tend to pop up the most on lists of future-proof job skills. Similar to our previous article regarding future-proof jobs, these skills are also common among that particular list of careers. Although there are many different skills; skills that set human power apart from artificial labor include creative thinking, communication, and advanced problem-solving are the most common across different expert studies.
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How would you like to streamline your accredited investor verification process, ensure compliance with regulations, and enhance your investor relationships, all while saving time and resources? The answer lies in outsourcing your accredited investor verification. In this article, we'll explore the myriad benefits of outsourcing this crucial process. From saving costs to mitigating risks, we'll delve into why more and more companies are turning to specialized service providers to handle their investor verification needs.
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Job security in an age of automation and uncertainty is one of the most important aspects of choosing a career. Although it is hard to predict the future, many careers have been consistently in high demand. Below we have compiled a list of five careers based on consistent growth, high demand, and a low chance of automation.
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