Securities and Exchange Commission (SEC), Venture Capital, Rule 506(c)

(Minimum Investment) Size Matters, When it Comes to Rule 506(c) Verification

Farrell Fritz, P.C. on 4/7/2025

Before 2013, issuers were prohibited from using any means of general solicitation or advertising when raising capital in the private markets. The prohibition was perceived by many to be the single biggest impediment to...more

Raising Capital for Your Business: Why Companies Should Avoid Non-Accredited Investors

Vicente LLP on 2/12/2025

When raising capital, startups and growing businesses must choose among various terms, structures, filings, and investor types. One decision—whether to include unaccredited investors—should be straightforward. For the reasons...more

Relief for Pre-Verified Accredited Investors May Encourage Rule 506(c) Offerings

Farrell Fritz, P.C. on 2/16/2021

It’s pretty common for issuers in follow-on offerings to solicit investors from previous rounds first. Indeed, doing so is often mandatory when early investors have preemptive rights. ...more

Matchmaker, Matchmaker Make me a… 506(b) Private Placement Investment

Fenwick & West LLP on 9/23/2015

The SEC has given the go-ahead to a venture capital firm’s plan to conduct 506(b) private placements online. On August 5, 2015, the Commission issued a no-action letter to Citizen VC, Inc., saying the firm’s proposed online...more

New Era in Private Capital Raising – Opening Up General Solicitation and General Advertising

Sands Anderson PC on 8/25/2015

The next few years may be the largest watershed event in opening up private equity capital since the 1980s when Regulation D was first published by the Securities and Exchange Commission (“SEC”). By allowing general...more

SEC Explains How to Form a Pre-Existing Relationship Using the Internet; New CDI’s Issued

Stinson - Corporate & Securities Law Blog on 8/7/2015

The SEC granted no-action relief to Citizen VC, Inc. which appears to state, although subject to facts and circumstances, a pre-existing relation can be formed with a person that first contacts a seller of securities over the...more