Raising Money: What is a Private Placement Memorandum (PPM) and When Do You Need One?

Birmingham Business Law Blog

When you are raising money, disclosure is your friend. If you tell an investor about a risk and that risk then causes the investment to not pan out as planned, you can point to that disclosure (assuming it is in writing) and say to the investor, “Look, I told you this might happen.” Disclosure helps prevent fraud claims; an investor cannot say that he was defrauded when you have a written and adequate disclosure that says such might happen. So, how do you make such disclosures to investors?

In the process of raising funds, there are very few things with respect to written material which are “standard” despite a good deal of commentary about this type of document being standard. Investments conversations usually begin orally and then develop from there. Sometimes companies will have a “pitch book” or “deck,” which is jargon for a Powerpoint presentation that they will show…

Ver la entrada original 743 palabras más

Deja un comentario