Rule 506 General Solicitation

FD Financial, Inc. specializes in consultant small business marketing to find accredited investors and offering structures form one million to five million dollars.

There’s a change in the air with Rule 506 General Solicitation

Now your small business does not have to be a publicly traded company to offer and raise millions of dollars from the general public. The Securities and Exchange Commission took long-awaited action in the area of private offerings at its open meeting on July 10, 2013. The Commission issued two releases adopting final rules (i) to eliminate the prohibition against general solicitation and general advertising in offerings conducted pursuant to Rule 506 of Regulation D under the Securities Act of 1933, provided, among other things, that all of the purchasers of the securities are “accredited investors” and (ii) to disqualify felons and other “bad actors” from such offerings.  These measures were undertaken to comply with mandates in both the Jumpstart Our Business Startups Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The new rule became effective September 23, 2013.

What does this mean to the small business? Your company can now have an offering under the new rule “506 C” and reach out through general solicitation or advertising to the 7.2 million accredited investors in the US. There was a time when entrepreneurs had to do an enormous amount of networking to find one qualified investor. This slow process meant that the vast majority of qualified investors never heard about the opportunity to invest in a great “A” round. Only about 3% or 180,000 of the 7.2 million accredited investors in the US are active angels, and those angels invest $21 billion each year. General solicitation will enable entrepreneurs to broadcast investment opportunities far and wide, giving those millions of investors a chance to find out about your startup or business opportunity.

  • If you’re interested in the new rule 506 c
  • If your company needs to raise from 1-5 million
  • If you’re not interested in paying a broker or platform 4-10% of your raise
  • If you’d like to market your offering to 7.2 million accredited investors

Call me.  I’m Rudy W. De La Garza President and CEO of FD Financial, Inc.
Monday –Friday CST 9:30-5 PM. My direct number is 210-861-8353