To raise startup funding in the U.S. with reasonable legal fees, an entrepreneur must choose an SEC exemption from full SEC registration. This applies whether you are using a convertible note, a SAFE (Simple Agreement for Future Equity), a priced round, or just about any other approach. This video explains the most commonly used exemption options and how they differ.
The most common exemption options are Regulation D (“Reg D”) and within that the 3 common options are rules 504, 506b and 506c. Another option, under the Title III JOBS Act (crowdfunding for equity) is Regulation Crowdfunding.
This video explains exemption from state blue sky laws, and why that’s important, why a safe harbor rule is helpful, and what an accredited investor is, which exemptions allow for a public offering to investors, and when a “demo day” event is exempted from the public offering restriction.