Lyft (Ride-Sharing)

Before going public in 2019, Lyft tapped into Reg D 506(c) to raise $600 million in pre-IPO funding. The company used these funds to expand into new markets, enhance its ride-sharing platform, and invest in technology, including autonomous vehicle research. Accredited investors, including venture capital firms and high-net-worth individuals, saw Lyft as a strong competitor to Uber. This capital infusion helped Lyft solidify its position in the gig economy, ensuring it had the financial strength to grow before its IPO.

Carta (FinTech)

Carta, a top-tier platform for managing equity and ownership for startups, raised millions through a Reg D 506(c) offering. Specializing in cap table management and equity structuring, the company used the funds to expand its services and customer base, catering to both early-stage and high-growth companies. By attracting accredited investors who valued its streamlined equity management solutions, Carta launched innovative products such as CartaX, a private stock exchange for pre-IPO share trading. Today, Carta manages equity for over 30,000 companies, overseeing a combined valuation of $2 trillion, showcasing the power of Reg D 506(c) in accelerating fintech growth.

Robinhood (FinTech)

Robinhood, the commission-free trading platform that disrupted retail investing, secured $363 million through a Reg D 506(c) offering. This capital supported Robinhood’s rapid expansion, funding features like crypto trading and cash management services. The funds also helped Robinhood scale its infrastructure, which proved critical during high-volume events like the GameStop trading frenzy of 2021. This case highlights how Reg D 506(c) can provide fintech firms with the liquidity they need to fuel innovation and sustain exponential user growth.

Zenefits (HR Software)

Zenefits, a leader in HR, payroll, and benefits software, leveraged Reg D 506(c) to raise $500 million during its growth phase. The company’s SaaS platform automates HR administration, making it attractive to accredited investors seeking opportunities in enterprise software. This capital helped Zenefits refine its technology, expand its sales efforts, and compete with established HR software providers. The raise played a key role in Zenefits achieving unicorn status, demonstrating how Reg D 506(c) can help SaaS startups scale effectively.

SoFi (FinTech)

SoFi, known for its student loan refinancing services, secured $500 million through Reg D 506(c). The funding enabled SoFi to diversify its offerings, expanding into SoFi Invest and SoFi Money, enhancing its role in digital banking. With this capital, SoFi also acquired Galileo, a payment processing platform, allowing it to vertically integrate financial services. Today, SoFi is a publicly traded company with millions of members, proving that Reg D 506(c) can support fintech firms in scaling and disrupting traditional banking.

Fundrise (Real Estate Crowdfunding)

Fundrise, a real estate crowdfunding platform, raised $100 million via Reg D 506(c). This funding enabled accredited investors to access institutional-grade real estate investments, which were previously exclusive to large financial institutions. Using Reg D 506(c), Fundrise expanded its platform, funding diverse projects such as commercial real estate and multifamily housing. The capital infusion helped Fundrise broaden investor participation and cement its position as a leader in real estate crowdfunding.

LendingClub (Peer-to-Peer Lending)

Before its IPO, LendingClub, a pioneer in peer-to-peer lending, used Reg D 506(c) to secure $65 million from accredited investors. The company connects borrowers with investors, offering an alternative to traditional banks. The capital helped LendingClub scale its loan offerings, strengthen its platform, and navigate regulatory requirements. This funding round supported LendingClub’s market expansion, reinforcing its standing in the peer-to-peer lending industry before going public.

Palantir Technologies (Data Analytics)

Palantir Technologies, a powerhouse in data analytics, raised $500 million under Reg D 506(c) before its 2020 IPO. The company serves industries such as national security, healthcare, and finance, providing advanced data solutions. This funding allowed Palantir to scale its technology and expand its customer base, attracting accredited investors who recognized the strategic importance of its analytics capabilities. The raise illustrates how high-tech firms can leverage Reg D 506(c) to secure large private investments while staying private longer and scaling operations.

Blockstack (Blockchain Platform)

In 2019, Blockstack conducted a token offering under Reg D 506(c), selling 62 million Stacks Tokens at $0.30 per token, aiming to raise up to $18.6 million. This initiative funded the development of its decentralized computing platform.

tZERO (Security Token Exchange)

tZERO, a subsidiary of Overstock.com, conducted a Security Token Offering (STO) under Reg D 506(c), successfully raising $134 million from accredited investors. The funds were allocated to develop its security token trading platform, aiming to create a regulated venue for security token trading.

Science Blockchain (Blockchain Incubator)

Science Blockchain, an incubator focused on blockchain-based companies, utilized a Reg D 506(c) exemption to raise funds through a tokenized security offering. This approach allowed the firm to attract accredited investors interested in gaining exposure to a portfolio of blockchain startups, all within a compliant framework.

Protos (Crypto Hedge Fund)

Protos, a cryptocurrency hedge fund, conducted a Security Token Offering (STO) under Reg D 506(c), raising approximately $5.74 million from accredited investors. This offering provided investors with exposure to a diversified portfolio of digital assets through tokenized securities.

Harbor (Real Estate Tokenization Platform)

Harbor, a platform specializing in the tokenization of real estate assets, conducted a Security Token Offering (STO) under Reg D 506(c). The company facilitated the tokenization of a $20 million real estate fund, allowing accredited investors to purchase tokenized shares representing ownership in the fund. This approach provided liquidity and fractional ownership opportunities in the traditionally illiquid real estate market.

Aspen Digital (Luxury Resort Tokenization)

Aspen Digital utilized a Reg D 506(c) exemption to raise capital through a Security Token Offering (STO) for the St. Regis Aspen Resort. The offering raised $18 million, allowing accredited investors to own tokenized equity in the luxury resort. This initiative demonstrated the potential of tokenization in the hospitality industry, providing investors with fractional ownership and potential liquidity through secondary markets.

BCAP (Blockchain Capital)

Blockchain Capital, a venture capital firm focusing on blockchain technology, conducted a Security Token Offering (STO) under Reg D 506(c), raising $10 million. The BCAP tokens represented a fractional ownership in the firm's third fund, providing accredited investors with exposure to a diversified portfolio of blockchain startups. This STO was among the first of its kind, setting a precedent for future tokenized venture funds.

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