---
title: "What Is General Solicitation?"
term: "General Solicitation"
description: "General solicitation is publicly advertising an investment offering—broadcast ads, open webinars, or broad social promotion—subject to strict securities rules for private funds and startups."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/general-solicitation
---

# What Is General Solicitation?

> General solicitation is publicly advertising an investment offering—broadcast ads, open webinars, or broad social promotion—subject to strict securities rules for private funds and startups.

**General solicitation** is any broad public marketing of a securities offering—when you are not limiting fundraising talk to pre-existing relationships and qualified private channels.

## How it works

Under US Reg D, traditional **506(b)** offerings prohibit general solicitation; founders rely on warm intros and existing networks. **506(c)** allows public advertising but requires reasonable steps to verify every purchaser is accredited. Examples of general solicitation include open LinkedIn posts asking anyone to invest, mass email blasts to unknown lists, and public demo days without gating. Fund managers face similar constraints when marketing new funds. Other jurisdictions have parallel rules. Crowdfunding platforms use different exemptions entirely. Counsel should review websites, podcasts, and conference pitches that mention an active raise.

## Why it matters

- **Founders:** A viral "we're raising" post can trigger compliance obligations or disqualify your exemption if documentation fails.
- **Investors:** GPs marketing publicly must run accredited verification workflows—investors should expect formal certification steps.

## Common mistake

Assuming "stealth" tweets or public pitch events do not count because you never shared a term sheet link. Regulators look at whether the audience was general, not whether documents were attached.

## Related ideas

Regulation D, accredited investor verification, private placement memorandum, and Rule 506(c) offerings.

## FAQ

### What is general solicitation in simple terms?

It is telling the general public that you are raising money—not just talking privately with known investors. Securities law treats public promotion differently from private conversations.

### Why does general solicitation matter?

Using general solicitation in the US typically requires relying on Rule 506(c) and verifying all investors are accredited. Mistakes can invalidate an exemption and create legal liability.


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Source: https://venturecapitaltracker.com/glossary/general-solicitation