A private biotech firm is raising $12 million through a private placement under Regulation D Rule 506(c). The company wants to broadly advertise the offering on its website and at industry conferences. Which of the following is required for them to be in full compliance with Rule 506(c)?

1. AThey must limit the offering to no more than 35 non-accredited investors.
2. BThey must take reasonable steps to verify that all purchasers are accredited investors.✓ Correct answer
3. CThey must ensure all investors receive audited financial statements.
4. DThey must file a registration statement with the SEC prior to selling securities.

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