Register for free or become a Premium Subscriber

"I find VC Experts to be a great source of information about the venture industry." - Mark Radcliffe, DLA Piper

Location: Home > Library > Encyclopedia > Glossary > Rule 505

Rule 505

Rule 505 of Regulation D is an exemption for limited offers and sales of securities not exceeding $5,000,000. Company can raise up to $5 million in a 12-month period. Security sales can be made to an unlimited number of accredited investor plus 35 additional investors. Disclosure documents, i.e. a private placement memorandum, must be delivered to all non-accredited investors. If dealing with accredited investors, the number of these is unlimited, but there is no advertising allowed.

Learn More About Rule 505

For more information on this topic, try one of the following options:

• View other documents that reference Rule 505.
• Browse The Encyclopedia of Private Equity and Venture Capital.
• Take an online seminar to learn more about this and other topics.

Disclaimer: Literature and other private equity and venture capital-related materials publicly available on this website are provided by VC Experts, Inc., and are for general informational and educational purposes only. VC Experts provides content and services that are not legal services. An attorney-client relationship does not exist in connection with the non-legal services VC Experts provides.