b'How to Legally Raise Private Moneyand 16,367 filings for pooled investment funds, all under Regulation D, while new public filings were a mere 1,427. According to this report, the overall impact of the JOBS Act was that: Issuers are now able to more easily raise capital through exempt offering methods, resulting in a redistribution of capital flow from public forms of capital raising, with little impact on aggregate capital formation levels. Entrepreneurs and small businesses can now raise capital via means that were only previously available to public companies, en-hancing the overall level of capital formation. Many issuers are finding that advertising for investors isnt as beneficial as expected. Only 10% of the population is estimated to be accredited. Their names are being sold by list brokers to issuers, all of whom are hop-ing to meet and attract new accredited investors to their offerings. They may find it difficult to compete with large hedge funds if they start taking advantage of the new advertising rules to expand their sphere of investors, as the large funds have virtually unlimited budgets to create professional marketing materials and programs to attract new accredited investors. Competition for accredited investors could become fierce in the future. As a small issuer you would be nave to believe that you could send out a few postcards or letters to people whose names were bought from a list of accredited investors, hoping to get $100,000 checks flooding your mailbox. For the small issuer, raising private money is still a relationship game, built on credibility, familiarity and trust that only comes through taking the time to meet and court new investors. The specific require-ments for Rule 506 offerings are provided below.Rule 506 is the most commonly used federal securities exemption be-cause it pre-empts state securities laws, allowing issuers to raise money from investors in any state without the imposition of additional state se-curities requirements. Filing notices with the SEC and in the states where your investors claim their primary residence is generally still required un-der blue sky laws. For real estate securities offerings and small business startups, issuers frequently cross state lines because the subject invest-ment property or business, the investors, and the issuer are located in different states. This makes the Rule 506 exemption the obvious choice. The requirements for the Rule 506 private placement exemptions can 54'