Skip to main content
@VCBeastmediaNewsletter
VC Beast

Legal & Compliance

General Solicitation

Last updated

Quick Answer

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.

Related Concepts

Accredited Investor →Regulation D →LP →

Further Reading

Venture Fund Compliance: SEC, State, and Ongoing Requirements

A practical guide to VC fund compliance covering SEC registration exemptions, Form ADV requirements, state blue sky laws, and ongoing obligations for emerging fund managers.

Comparisons

Regulation D vs General Solicitation

Frequently Asked Questions

What is General Solicitation in venture capital?

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...

Why is General Solicitation important for startups?

Understanding General Solicitation is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.

What category does General Solicitation fall under in VC?

General Solicitation falls under the legal category in venture capital. This area covers concepts related to the legal frameworks and compliance requirements in venture capital.

Newsletter

The VC Beast Brief

Join thousands of founders and investors. Every Tuesday.

VentureKit

Ready to launch your fund?

Build Your Fund Package
Back to Glossary