Also known as a PPM
So what is a Private Placement Memorandum (PPM)? Hopefully, we can provide some insight into this topic.
A private placement memorandum (PPM) is an official company document provided to potential investors. The aim of the PPM is to introduce an investment opportunity and discloses the details and risks associated with the opportunity.
What is a Private Placement Memorandum = Securities Offering
A private placement memorandum shares information about a securities offering that is exempt from normal SEC regulations with potential investors. A PPM is not a Business Plan. It should be used along with a well-design business plan and or investment pitch presentation.
- Subscription Agreement: a contract between the seller and the investor. This is required for each investor.
- Investor Questionnaire
Private placements are regulated by the Securities and Exchange Commission (SEC). They are not required to go through the same registration process as public offerings, but they must follow specific SEC rules to be exempt.
U.S. Securities & Exchange Commission. “Investor Bulletin: Private Placements Under Regulation D.” Accessed March 18, 2021.