Blog > Côme Laffay

Equity Crowdfunding (also known as “Reg CF”) authorizes US companies to reach out to both accredited and non-accredited investors and raise up to $5 million in any rolling 12-month period.

Rule 506(c) allows companies to raise an unlimited amount of money from accredited investors; unlike under Rule 506(b), the securities offered by a company relying on Rule 506(c) may not be sold to any investor that is not accredited.

Rule 506(b) is a popular exemption from registration, as it allows startups to raise an unlimited amount of money from accredited investors and up to 35 non-accredited investors.

Section 4(a)(2) allows a company to raise funds from its founding team. This post breaks down the legal aspects of this SEC exemption for startup founders.