What Is Rule 504? The $10 Million Limit and the Hidden Catch Rule 504 lets an issuer raise up to $10 million in any 12-month period. That’s the headline number, and it’s the reason sponsors with a “small” raise assume Rule 504 is the natural fit. Here’s the catch that
The Difference Between Defining an Investor and Verifying Them Rule 501 tells you who an accredited investor is. Your chosen exemption—Rule 506(b) or Rule 506(c)—tells you how hard you have to work to prove it. Those are two different jobs, and sponsors get into trouble when they think the first
The Blueprint: How the Rules of Regulation D Work Together When a sponsor tells me, “I’m doing a Reg D offering,” what they almost always mean is that they are doing a Rule 506 offering. That is fine as shorthand, but it hides how the pieces actually fit. Regulation D
Rule 506(c) sounds simple until you actually try to use it: you get to advertise your raise to the world, but the price is real verification work on every single investor. Get the trade-off backwards and you either kill your marketing plan or blow the exemption entirely. The Trade-Off: General
What Regulation D Actually Does for a Sponsor Regulation D gives you the legal architecture to raise private capital without registering a public offering with the SEC. That is its entire job. If you follow the safe harbor rules, you can raise money from investors without going through the registration
