Regulation D (Reg D) is a U.S. Securities and Exchange Commission (SEC) exemption that allows companies to raise capital through private offerings without registering the securities with the SEC. It’s designed for startups and growing businesses that want to raise funds quickly and efficiently, typically from accredited investors. The most commonly used rules under Reg D are Rule 506(b) and Rule 506(c). Rule 506(b) lets companies raise an unlimited amount from an unlimited number of accredited investors and up to 35 non-accredited investors every 90 days, as long as they don’t advertise the offering. Rule 506(c), on the other hand, allows general solicitation and advertising but only permits sales to verified accredited investors. All Reg D offerings require filing Form D with the SEC after the first sale. This exemption is popular because it saves time and legal costs, but it still requires companies to provide proper disclosures and follow anti-fraud provisions.

Red Rock Securities Law can provide the legal work needed to execute a regulation D offering, prepare and file your SEC filing, and build a Regulation D investor raise portal to administer the raise.

Interested in learning more? Contact us today at (720) 586-8610