Private Placement Memos Get Start-Ups Moving

Recently, I wrote about the two tools available to small businesses to stir interest and investment – the business plan and the private placement memorandum.  Let’s focus on the private placement memorandum. A Private Placement Memorandum (or PPM for short) is a legal document that organized businesses provide to prospective private investors who may be interested in buying stock or some other kind of security in your business in some kind of private transaction. The PPM will put all of your cards on the table: 1.  Your company’s basics:  Who you are, what you are looking to accomplish and the nature of your business.  This can also include the description of your company and management structure. 2. Your terms:  First and foremost, you will need to identify the rights, restrictions and class of your securities.  This section includes the capitalization of your company before and after offering the securities or

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