COMPLIANCE

Materializing innovation on the planet

General solicitation

Common law countries usually have the regulation about raising capital. Here is the glasp of the limitation about raising fund. Keep in mind if you are raising capital, you should consult state lawyer, and if you are raising capital in the different country, you should consult legal council to avoid any risks in the fundraising event.

Depending which regulatory pathway a company choses to raise capital, the company may be limited in how it can connect with potential investors. For example, the most commonly used offering exemption under the federal securities laws — Rule 506(b) of Regulation D — prohibits the use of general solicitation to market the securities.
General Solicitation U.S. Securities and Exchange Commission

The types of general solicitation

・Newspaper and magazine advertisements
・Unrestricted public websites
・Television and radio broadcasts
・Seminars (excluding demo days)
・email campaigns
・cold calling

Accredited investors

Chaperone

Rule 506(b) Private Placements