The Jumpstart Our Business Startups (JOBS) Act of 2012 lifted a ban on the public solicitation of private investments that had been in place for some 80 years. Now, companies that use Regulation D are permitted to raise capital from both accredited and non-accredited investors. SEC Rule 506 of Regulation D provides more information about how this works.

Regulation D
Reg D issued by the Securities and Exchange Commission (SEC) covers private placement exemptions. Under Regulation D, startups and small businesses can raise funds in a less expensive and faster way than by releasing the...