It is vital for startup founders seeking to raise capital to understand the main differences between Rules 506(b) vs. 506(c). Rule 506(b) imposes greater restrictions on marketing but allows sales to non-accredited investors. Rule 506(c) allows for broader marketing of offerings but only allows for sales to accredited investors.
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Rule 506(b) vs. 506(c)
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It is vital for startup founders seeking to raise capital to understand the main differences between Rules 506(b) vs. 506(c). Rule 506(b) imposes greater restrictions on marketing but allows sales to non-accredited investors. Rule 506(c) allows for broader marketing of offerings but only allows for sales to accredited investors.