Regulation D (Reg D) allows companies to sell equity or debt securities without registering them with the Securities and Exchange Commission (SEC). Under Reg D, there are different exemptions that companies can use to offer investments. On NextSeed, companies use Rule 506(c), which provides a specific exemption that allows companies to offer these investments to the general public. However, only accredited investors are allowed to make an investment. Investors do not have investment limits.
A company can sell debt or preferred equity through a 506(c) offering. There is no limit to the amount a company can raise.