Based upon the questions (below) in your intial post, I`d say some things weren`t covered.
Second, how often do I need to update investors with the progress of the company? What should I expect as far as input from investors? Should I seek their approval for business decisions or should I just keep them updated on the progress according to the busines plan?
I would not assume that just because these people have made a bunch of money that they know how to structure your deal correctly.(or to your benefit)
Oh, well shows what I know. I was under the impression that Regulation D was for all other stock transactions that will not be regulated.
I am glad to know there are other alternatives. Please elaborate on the alternatives.
This may be more than you want to know, however:
The SEC regulates all securities - except those which are exempt (such as government securities, banks, etc) which are usually regulated elsewhere.
For all those other securities - you are required to register them with the SEC before selling any - unless you can qualify under an exemption.
Reg D (with the specific sub-section) provides some of those exemptions. It is the probably the most well known and frequently used to make a Private Placement - typically under Rule 506. This is a safe harbor rule for both federal and states. The preparation of necessary documentation (a Private Placement Memorandum -PPM) and other supporting materials requires some investment.
There are other possible exemptions available (requiring varying documentation and preparation $) depending upon circumstances which we discuss with each client as we help them find the optimium approach to their capital needs.