Use accredited investor lists and raise money by issuing a private placement memorandum under Regulation D.\u00a0 This is an exemption from registration with the SEC that allows companies to raise capital without doing the paperwork that is required to go public.\u00a0 Under Regulation D, there are several rules, most of which require companies to work with accredited investors.<\/p>\n
An accredited investor is defined by the SEC as someone that has made over $200,000 on their own in the past two years or someone who has made $300,000 jointly with their spouse.\u00a0 They may also have a net worth of $1 million outside of their personal residence.\u00a0 It can be difficult to identify this type of investor because there is no way to know how much money someone makes when you meet them.\u00a0 You can obtain accredited investor lists from www.accreditedinvestorleads.com<\/a>.\u00a0 This is a tool you can use to reach the right type of investors and start raising money.<\/p>\n Reg D and a Private Placement Memorandum<\/strong><\/p>\n Regulation D has several distinct rules that you can use to raise capital.\u00a0 There are advantages and disadvantages to using each one, so it is important to consider your goals prior to deciding which rule you want to use and issuing your private placement memorandum.<\/p>\n Once you know which rule you want to use you can issue your private placement memorandum.\u00a0 This document should contain the following information (at minimum):<\/p>\n\n