Legal & Compliance
General Solicitation
Publicly advertising a fundraise to non-preexisting relationships — allowed under Rule 506(c) for funds raising from accredited investors only.
General solicitation refers to advertising or publicly marketing a fundraise to investors without a pre-existing relationship. Historically prohibited for private securities offerings, Rule 506(c) of Regulation D (enacted under the JOBS Act of 2012) allows general solicitation if: the offering is only sold to verified accredited investors, and the issuer takes reasonable steps to verify accredited investor status. General solicitation enables VCs and startups to advertise fundraises on social media, at conferences, and through press — something previously restricted. Most established VC funds still rely on relationship-based (506(b)) fundraising. General solicitation is more commonly used by newer funds, syndicates, and platforms like AngelList.