A necessary part of raising funds, drafting your Private Placement Memorandum, or PPM, is a process that is costly and painstaking. Whether using fund managers or attorneys, it typically runs into the thousands, and that’s money that could be better used in any startup. Saving you time, money, and from mistakes unclear to a first-time founder or CEO is what Funding Coach is about, and here’s our answer to how and why you don’t have to spend $25,000 on this.
Starting at the beginning, what is a PPM? A PPM is an offering document used by companies to get investors on board, which details what the investment opportunity is, the potential return on investment and risks, and any other legal disclosures that cover the company. Essentially, it is a document outlining everything a prospective investor needs to know before pouring any money into your venture.
As such, you can probably understand why this is such a key component when it comes to sourcing capital, and why it can cost as much as it does. Your investors need a full picture of what to expect, good and bad, and it is imperative that you disclose everything they expect to know.
It’s also worth noting what a PPM is not. It is not interchangeable with a business plan -- your offering memorandum is a detailed, factual document that discloses risks, where a business plan is just that, a strategy. You do need both, but your PPM -- if not done correctly -- can land you in hot water with not only investors but the SEC.
Before you start to worry about where you’re going to find that $25,000 for your PPM, stop -- you don’t have to. We’ve got tried and trusted templates for corporations, LLCs, real estate funds, and more, and at just a fraction of an attorney’s price without compromising on any of the information you need!
It doesn’t matter if you’re taking the route of equity or debt financing (or both), these templates are easily customizable, and already take everything into account that you need in your PPM. There are line-by-line instructions, and you need only give it to an attorney to review once you have completed it (or as much of it as you can).
Make no mistake, a PPM is not optional -- you’ll need this document to comply with securities laws, and if you or the company/individual drafting it get it wrong, it could cost you your capital raise altogether, not to mention the tens of thousands needed to rectify it (or even more later in the process should any discrepancy or claim arise). In short, it’s important to get this one right.
We’re so confident that you’ll benefit from one of our already proven templates that there’s a money-back guarantee on it. They’ve been downloaded and used by many others like you to secure millions in funding, and there’s no reason you shouldn’t benefit from this too.
Go ahead and check out the templates. Where will you reinvest that $25,000 you’ve freed up?