Raising Capital the Right Way — 506(b) vs. 506(c), What’s Your Play?

[Jack Pasmore]

I’ve been deep in the trenches of capital raising, structuring deals, and making sure everything stays SEC-compliant. Like many of you, I know the difference between Rule 506(b) and 506(c)—the trade-offs, the nuances, and where each one shines.

• For those that don't know,
• - 506(b) lets you bring in non-accredited investors, but no public solicitation.
• - 506(c) gives you full marketing freedom, but only accredited investors are allowed.

The legal framework is clear. But here’s the real question… How are YOU successfully raising capital while staying 100% compliant?

I’ve seen some investors swear by the old-school, relationship-driven 506(b) approach. Others are running highly optimized 506(c) funnels that print money (raise funds effortlessly). And some? Well, they’re playing chess while the rest of us are playing checkers. I believe that this business is 100% relational and will always nurture a relationship before the pitch.

So, what’s working in this market? Are you leveraging content marketing, strategic partnerships, in-person networking, or something else entirely?

Let’s cut the fluff—feel free to drop some strategies that are moving the needle for you.

Looking forward to hearing what’s working in today’s market.