Most private companies that seek to raise capital through the sale of stock or other securities rely on the private placement safe harbor in Rule 506 of Regulation D under the Securities Act of 1933. The Securities and Exchange Commission (SEC) recently approved changes to Rule 506 that will significantly impact the way companies raise capital, and proposed additional changes to Regulation D that would further alter the traditional fundraising paradigm. This article summarizes the new and proposed rules and provides you with a basic road map for conducting offerings under Rule 506, if and when these rules become effective.
To read the original article: The New Rules for Raising Capital from Accredited Investors | The VC Experts' Buzz | VC Experts
