The article co-authored by William Herrfeldt and Mario Richards was published on July 5, 2018, and is excerpted here:
For founders of early-stage companies and sponsors of private investment funds, Regulation D, and particularly Rule 506(b), under the Securities Act of 1933 serves as the primary tool for raising capital. In fact, the amount of money raised under Regulation D rivals the amount of money raised on the public markets. The frequent use of Rule 506(b) in capital raising is driven largely by the simplicity of its compliance requirements (including preemption of state securities laws) and the lack of limitations on the amount of capital that can be raised and the number of accredited investors that can participate. The filing requirement (Form D) is straightforward; however, it does require identification of the company raising capital and its directors and officers, the type of security sold, the minimum investment amount, the total offering amount, the total amount sold, and the number of investors.