506(b) vs 506(c): which exemption works best for your raise?
The practical trade-off between Rule 506(b) and 506(c) offerings.
Both 506(b) and 506(c) are Regulation D exemptions that lets you raise without registering with the SEC, but they differ on solicitation and verification.
506(b): No general solicitation, but you may raise from you people you have a substantive relationship with. You may rely on investors that are self-certifying as accredited.
506(c): You may publicly advertise the raise. You must take reasonable steps to verify every investor is accredited.
PaperOS supports both with investor onboarding portals. You may choose the exemption you'll use based on whether or not you need to market the raise publicly.
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