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Minority Angel Investor Network is a network of accredited investors with an
interest and commitment to invest in high growth, minority owned or minority led
companies. Minority Angel Investor Network is not a fund. It is a group of
individual investors each of whom makes his or her own decision regarding
investment in a specific opportunity. Read more.
Minority Angel Investor Network is a member of ACA and PAN.
Effective September 23, 2013, the SEC fundamentally changed the world of private placements. New rules implementing Section 201(a) of the JOBS Act give start-ups a choice: they can use old Rule 506(b) to conduct a private placement, in which case general solicitation and general advertising are prohibited; or they can use new Rule 506(c), in which case securities can be offered through general solicitation and general advertising.
Though seemingly liberal, new Rule 506(c) comes with a twist. The issuer is permitted to use general solicitation and general advertising, only if, among other conditions, it takes reasonable steps to verify that purchasers of its securities are in fact accredited investors.
MAIN's members do not want to sacrifice their privacy by providing tax returns or other sensitive personal information in order to satisfy Rule 506(c)'s verification requirement. For this reason, unless they have consulted MAIN earlier to work out a solution to avoid this problem, companies seeking funding from MAIN should continue to proceed under Rule 506(b), should not rely on Rule 506(c), and should not engage in general solicitation or general advertising in connection with the offering for which they are seeking a MAIN investment.