Securities and Security Exemptions
What is Regulation D?
Regulation D is a registration exemption that allows companies to generally raise an unlimited amount of capital from accredited investors. There are two primary sections within Regulation D that you will encounter on Republic through OpenDeal Broker LLC: 506(b) and 506(c).
506(b) offerings can only be shared with investors who Republic or the company has a pre-existing substantive relationship with. All investors will be required to self-verify to ensure the investor is accredited.
506(c) offerings can be shared and advertised to anyone (like Reg CF and Reg A+). All investors need to verify their status as an accredited investor by providing substantive documentation.