What is a Rule 506(c) offering?

Rule 506(c) permits general solicitation — publicly advertising a raise — in exchange for a stricter requirement: every purchaser must be an accredited investor whose status the issuer takes reasonable steps to verify (tax documents, letters from advisers).

Introduced by the 2012 JOBS Act, 506(c) enables public fund announcements and platform-based raising. Many issuers still prefer 506(b) to avoid the verification friction.