Why Reg D?
When it comes to raising capital via equity crowdfunding, you have great options in Reg A+ and Reg CF that let you raise from your customers, fans, and followers, accredited and non-accredited alike.
However, for those who want to access capital faster or dip their toe into the online capital raising waters, Reg D stands out as the superior choice, offering distinct advantages that directly address the pain points above:
- Unlimited Capital Potential: Unlike Reg CF (capped at $5M) or Reg A (capped at $75M), Reg D has no limit on the amount of capital you can raise. This is crucial for startups with ambitious growth plans and strong investor networks.
- Reduced Regulatory Burden, Faster Funding: Forget the extensive disclosure documents and lengthy SEC reviews often associated with Reg A. Reg D offers a simpler, less expensive, and significantly faster regulatory process. This means less time bogged down in paperwork and more time focused on raising capital and growing your business.
- Cost Efficiency: With fewer regulatory hoops to jump through, Reg D offerings are more cost-effective to execute, saving your startup valuable resources that can be re-invested into growth.
Understanding Your Reg D Options:
Reg D offers two main pathways, each with unique benefits:
1) Rule 506(b): For Your Trusted Network
- Raise an unlimited amount from an unlimited number of accredited investors and up to 35 non-accredited investors.
- Ideal for leveraging your existing network, as general solicitation (public advertising) is not permitted.
2) Rule 506(c): For Broader Reach
- Raise an unlimited amount from an unlimited number of accredited investors.
- Allows general solicitation and advertising, enabling you to reach a wider investor pool. However, investor accreditation must be verified.
Issuance: Your Fast Track to Funding with Reg D
At Issuance, we recognize the critical need for an efficient and compliant fundraising process. Founders need a platform that streamlines the process, handles compliance, and lets you focus on your vision.
We've built a platform specifically designed to help issuers succeed with their raise:
- Same-Day Onboarding: While Reg D simplifies filing, Issuance takes it further. Complete our onboarding in less than one day, so you can start raising capital and accessing funds in days, not months.
- Frictionless, E-commerce Style Investor Checkout: No more clunky, outdated subscription processes. Our mobile-optimized checkout ensures a seamless experience for your investors, accepting card, Google/Apple Pay, stablecoin, ACH, and wire payments in under 60 seconds.
- Real-Time Access to Capital: Track your deal proceeds and trigger payouts in real-time, on any device. With rolling payouts, you can withdraw funds as they become available, providing crucial liquidity for your operations.
- Compliance-First, Effortless Accreditation: We prioritize compliance so you don't have to worry. Our integrated KYC/AML ensures every transaction is compliant and investor identities are verified. For 506(c), our unique "Click-to-Attest" feature simplifies investor accreditation, allowing investors to easily send attestation requests to their CPA, lawyer, or financial advisor through our portal.
Choosing the right Reg D exemption and the right platform can dramatically impact your fundraising success.
Whether you're tapping into your existing network with 506(b) or seeking broad outreach with 506(c), Issuance provides the technology and expertise to execute your campaign effectively and efficiently.
Ready to leverage Reg D exemptions?
Schedule a demo with Issuance to learn how our platform can power your fundraising success: https://www.issuance.com/forms/platform-demo
