Finding investors
How you find investors decides which exemption you can use. Here are the common routes and the rules that come with each.
Last reviewed November 2026
Match the method to the exemption
| Method | Works under | Watch for |
|---|---|---|
| Your existing network | 506(b), 506(c), 504 | Relationships must predate the offering for 506(b) |
| Angel groups and demo days | 506(b), 506(c) | Rule 148 limits what you can say at events |
| Registered broker-dealers | 506(b), 506(c), 504 | Commissions, due diligence, FINRA rules |
| Public advertising and social media | 506(c); 504 where states allow | Verification of every investor |
| Online investment platforms | 506(c), or 506(b) with pre-qualified members | Platform fees and registration status |
| Crowdfunding portals | Regulation Crowdfunding, not Reg D | $5 million cap and Form C disclosure |
Your own network
Friends, family, colleagues, customers and business contacts are where most first raises start. Under Rule 506(b) you can offer to people you have a pre-existing, substantive relationship with. Keep a list of who you contacted and how you know them. Mixing family and money can strain relationships, so give everyone the same PPM and the same honest picture of the risks.
Angel investors and demo days
Angels invest their own money, often with advice and introductions attached, and usually expect meaningful ownership or good terms. Angel groups hold pitch events where you can reach many at once. Under Rule 148, communications at demo days sponsored by universities, angel groups, incubators, accelerators and similar organizations aren’t general solicitation, if you limit what you say about the offering to the basics the rule allows.
Broker-dealers
Registered broker-dealers have networks of qualified investors and can bring them to a Rule 506(b) offering. They are selective, charge commissions and run their own due diligence. Check any firm on FINRA’s BrokerCheck, and be wary of anyone who asks for a large upfront fee just to present your deal.
Only a registered broker-dealer can generally receive commissions or other pay tied to sales. Paying an unregistered finder a success fee can give investors a right to rescind and create problems under state law. The SEC proposed a limited finder exemption in 2020 but never adopted it.
Advertising under Rule 506(c)
Rule 506(c) lets you advertise anywhere: your website, social media, email lists, podcasts, events and paid ads. Every investor must be accredited and verified. Read the verification rules.
Crowdfunding and Regulation A
Regulation Crowdfunding allows up to $5 million in 12 months from anyone, through a registered funding portal or broker-dealer, with disclosure on Form C. Regulation A allows up to $75 million with an SEC-qualified offering circular. Both are alternatives to Regulation D with their own documents and rules.
Before you pitch
- Finish your PPM and subscription documents, and make sure every deck and summary matches them
- Decide on your exemption first, because it controls how you can reach people
- Track every contact and every offer
- Never promise returns
Capital raising made easy.
Pick a template and a kit. Every kit includes the PPM, subscription agreement, investor questionnaire and state legends, and we file your Form D and Blue Sky notices.