506x Apr 2026

This is the traditional route used by many private companies to raise unlimited capital.

: Participation is strictly limited to accredited investors; no non-accredited investors are permitted.

For deeper reading, you can find a comprehensive comparison guide at Carta or view a detailed comparison chart from Dunn Carney LLP .

: Issuers must take "reasonable steps" to verify an investor’s status, such as reviewing tax returns or bank statements, rather than just relying on the investor's word. Comparison at a Glance Rule 506(b) Rule 506(c) Public Advertising Prohibited Accredited Investors Non-Accredited Investors Up to 35 (must be sophisticated) None Allowed Verification Method "Reasonable Belief" "Reasonable Steps to Verify"

Introduced by the JOBS Act, this rule allows for much broader marketing of a deal.