Under Rule 506(b), GroundBreaker can protect the sponsors’ platform and deals from unauthorized users and limit the number of non-accredited investors to 35 participants while enabling an unlimited number of accredited investors.
For general solicitation under Rule 506(c), GroundBreaker ensures all investors are verified as accredited before being authorized to invest in your deals. To add a level of security for sponsors, an indemnification letter goes with each verification to guarantee that investor checks are being carried out according to the guidelines set by the SEC.
Sponsors will need to independently produce their own offering documents such as the private placement memorandum and subscription agreements, file a Form D with the SEC, and ensure that all language on the offering platform is compliant with Section 4(a)(2) of the Securities Act.
With GroundBreaker, you get a team of real estate, securities, and software experts to help you navigate the nuances of capital fundraising and investor management in the web 2.0 world.
As needed, we make referrals to securities attorneys or compliance experts with specialization in private placements for the real estate industry.