The new Rule 506 changes everything. The SEC has lifted an 80-year ban on general solicitation. Start-ups for the first time can use public advertising to sell private offerings. The new Rule 506 may prove to be the answer to the prayers of star-ups frustrated with existing fund sourcing platforms. But it also has hidden dangers that will cause many issuers to continue to use the “old Rule 506” [506(b)]. Among the new Rule 506 strengths: • The amount that can be raised is unlimited • There is no requirement for review of the offering under any Blue Sky laws (state securities regulations) • There is no review of the offering by the SEC • Solicitations can be online or offline • Solicitations can be made to anyone! Sales (as opposed to solicitations) must be to accredited investors, and issuers must be able to verify that any actual investor is “accredited.” Also, proposed rules will require issuers to send the SEC all marketing copy; as of this writing, however, there is no need to send copies of solicitation materials to the SEC (or to state regulators). Soon you will start to see: • Emails asking if you might be interested in learning about investing in someone’s project • Videos of founders and entrepreneurs soliciting your interest in their projects • Links on websites inviting you to click through to learn more about an investment • Mobile apps with increasingly creative solicitation Author In 2009 Douglas Slain launched a monthly law reporting service, Securities Enforcement Reporter, and a quarterly, Blue Sky Chronicle, both titles focusing on the under-reported state hearings of private placements gone astray. These publications print versions are no longer extant but their mission and community of interest live on through a growing 1400-member discussion group, known as LinkedIn s State Securities Enforcement Discussion Group." Slain has been asked to serve as an expert witness in litigation that turned, in part, on compliance with SEC Regulation D. Slain also has a working relationship with several members of North American Securities Administrators Association (NASAA). In early 2014 Slain began serving on the investor s committee of CrowdFund Intermediary Regulatory Advocates (CFIRA), a group of professionals gathering together to work with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) to set standards and establish best practices. In 1977 Douglas Slain began Litigation Research Group, which launched and managed a growing number of monthly law reporting services over the years, including Insurance Litigation Reporter, Professional Liability Reporter, Medical Liability Reporter, and Construction Litigation Reporter.