Crowdfunding on Steroids: General Solicitation under Rule 506(c)

The new Rule 506 changes everything. The SEC has lifted an 80-year ban on general solicitation. Start-ups for the first time can use public advertising to sell private offerings. The new Rule 506 may prove to be the answer to the prayers of star-ups frustrated with existing fund sourcing platforms. But it also has hidden dangers that will cause many issuers to continue to use the "old Rule 506" [506(b)]. Among the new Rule 506 strengths: - The amount that can be raised is unlimited - There ...