The Benefits of a Private Placement Memorandum

Posted by Universal on January 3rd, 2017

If you’re an entrepreneur and don’t have a private placement memorandum for your business, you might be leaving yourself open to litigation, or even losing potential investors. Private placement memos disclose information specifically for investors, protecting you from liability by presenting them with the risks associated with your project. These documents also make your company look more professional, since it gives investors a crystal-clear picture of your business.

To get specific, a private placement memo discloses details about the company, the deal, and the management team. It includes facts about how much of the company you are selling, a description of the share structure, whether there are debt issues, the use of proceeds, conflicts of interest, and other data that will help the investor understand what they might be signing up for.

All kinds of companies benefit from private placement real estate, from small, local shops to multimillion-dollar projects. You can seek to raise whatever amount of capital you need, from under million to unlimited dollar amounts, by choosing the regulation D rule (504, 505, or 506) that best suits your aspirations.

If the process of preparing this document sounds daunting, it’s good to know that there are companies like Venture Associates to take care of you. They have decades of experiences with private placement memos, as well as a commitment to engaging with entrepreneurs. They’ll meet with you personally to learn about your business and your goals so that they can handle your red D memo preparation from start to finish.

Don’t leave yourself vulnerable to lawsuits, and don’t leave your prospective investors in the dark. Reach out to www.venturea.com!