Which Securities Exemptions is Fairmint Compatible With?
This article is for both founders and investors using Fairmint.
Fairmint is designed to support multiple securities exemption frameworks. The platform's flexible configuration allows issuers and their counsel to set up offerings that comply with applicable laws and regulations.
Supported Exemption Frameworks
Regulation D, Rule 506(b) — private placements with no general solicitation. Up to 35 non-accredited but sophisticated investors allowed. Most common for early-stage fundraising.
Regulation D, Rule 506(c) — public solicitation and advertising permitted, but all investors must be verified accredited investors.
Regulation S — offerings made outside the United States to non-US persons. Fairmint supports configuring country-based restrictions for international compliance.
How to Configure Your Exemption
When creating a fundraising series in Fairmint, you choose your solicitation type (506(b) or 506(c)) and configure investor requirements accordingly. See Soliciting & Advertising — 506(b) vs 506(c) for details.
Issuers can depart from many default options and define their own parameters. Always work closely with qualified legal counsel to ensure all applicable requirements are met.
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This article explains how to use the Fairmint platform. It is not legal, tax, or investment advice. Consult a qualified professional for questions about your specific situation.