Venture Financing Documents

Private Placement Memorandum

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Sample Private Placement Memorandum (PPM) For Sale.  

A private placement memorandum is used to raise growth and expansion capital for all sorts of entrepreneurial endeavors.  Some firms decide to go solo and hire legal council to prepare the PPM.  Once complete, the management team is responsible for soliciting and pitching potential new investors.  The only fees incurred are those of the attorney and the time of the management team.   

Other firms attempt to hire an intermediary (investment bank) to help with the capital raise.  This is where it gets tricky and this is why the sample private placement for sale below is so helpful.  An entrepreneur will encounter all sorts of institutions offering all sorts of different promises to raise money for the start-up.   The decisions and processes can be very confusing and time-consuming and for many start-ups a wrong decision will KILL the company.  There are all sorts of negotiations involved when retaining an investment bank, there many different types of investment banks.   As the entrepreneur YOU must be at the top of your game or you will get the short end of the stick!!

The PPM that is offered for sale through this site is my attempt to provide a starting point for all entrepreneurs and management teams considering the possibility of raising capital via a Private Placement.  The document was prepared by a highly reputable legal firm in conjunction with the efforts of management.  This PPM successfully raised over $15 million from individuals and institutions over the course of the raise.  


Included in this download:

Engagement Letter. Typically sent by the investment bank to the entrepreneur.  It contains much of the same stuff as in the term sheet, basically even a higher-level overview of the proposed terms.  Many times before a term sheet is kicked out by the investment bank, an engagement letter will be sent as a show of commitment and as initial introduction to the general terms that the investment banker is considering.

Investment Bank Term Sheet.  Commentary on the term sheet, the terms, and how to get an i-bank to consider taking you on as a client.

Due Diligence Checklist that the i-banker will give to the management team during the preparation of the PPM.

Private Placement Memorandum (company name omitted) that raised $15 million from individuals and institutions

Subscription Agreement that accompanies the Private Placement and commentary on what is an "accredited investor."


 

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These documents are designed for business owners who have a basic understanding of private placements.  It is presented only as a sample document for educational and reference purposes. In any private placement, it is important to retain legal counsel, and this document should in no way be used to substitute for such counsel.


 

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