What is a 506(c) offering?

506(c) offerings allow verified accredited investors to invest in private companies raising on Netcapital, under SEC Regulation D.

Issuers raising under the 506(c) exemption on Netcapital are only permitted to accept investments from accredited investors. Additionally, those accredited investors are required to provide verification of their accredited status. Instructions on how to provide verification will be sent to your email. 

There are no annual limits to the amount that accredited investors can invest in both a 506(c) offering and a 4(a)(6) offering. Additionally, if allocation fills up in Section 4(a)(6) of an offering, there could be additional shares available for accredited investors only through Rule 506(c) of SEC Regulation D.