What kind of business might choose to raise money through Reg D?


#1
  • Businesses that want to raise money quickly and cheaply without significant reporting requirements or registration.
  • Businesses that may want to limit the quantity of investors on their capitalization tables and will be able to raise the desired amount of capital from a potentially small number of investors.

Remember, Reg D 506© allows for general solicitation of the offering, but Reg D 506(b) does not.