Compliance Options

CapSign supports multiple securities exemptions with built-in compliance modules.

Regulation D

506(b) - Private Placement

Overview:

  • Up to 35 non-accredited investors

  • Unlimited accredited investors

  • No general solicitation or advertising

  • Relationship-based fundraising

Compliance Modules:

  • KYC verification

  • Document signing (subscription agreement)

  • Investor limits (max 99 total investors typically)

  • Optional accreditation checking

Best for:

  • Friends and family rounds

  • Angel investor raises

  • Relationship-based capital raising

506(c) - General Solicitation

Overview:

  • Accredited investors only

  • General solicitation allowed

  • Can advertise publicly

  • Must verify accreditation

Compliance Modules:

  • KYC verification (required)

  • Accreditation verification (required)

  • Document signing

Best for:

  • Demo days

  • Public pitch events

  • Online marketing campaigns

Regulation S

Overview:

  • Non-US investors only

  • Offshore offerings

  • No US registration required

Compliance Modules:

  • KYC verification

  • Jurisdiction checking

  • Document signing

Best for:

  • International investors

  • Global fundraises

  • Non-US targeted offerings

Regulation A+

Overview:

  • Up to $75M per year

  • Tier 1 (<$20M) or Tier 2 ($20-75M)

  • Mini-IPO alternative

  • SEC qualification required

Compliance Modules:

  • KYC verification

  • Investment limits (Tier 2 non-accredited: 10% of annual income or net worth)

  • Document signing

Best for:

  • Larger raises ($5M+)

  • Public-style offerings

  • Eventual listing plans

Choosing the Right Exemption

Consider:

  1. Investor type - Accredited vs non-accredited

  2. Marketing ability - Can you advertise?

  3. Raise size - How much capital?

  4. Geography - US vs international investors

  5. Investor count - How many investors?

Consult a securities attorney before choosing.

See Also

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