With so many new rules for the new online capital rules available, such as general solicitation, adequate disclosure is more important than ever. Protect your company from investor suits and SEC actions, while properly informing people of the investment opportunity. Generates the right document depending on what type of deal you ‘re doing.
Private Placement Memorandums (PPM)
Whether you are conducting a Regulation D 506(b) or 506(c) offering or other type of private placement, you should use a private placement memorandum or PPM to protect yourself and your business. A PPM is a disclosure document that you provide to potential investors and is a record that you provided all material information about your company. A PPM is especially useful when raising money from outside investors or strangers who you don’t have a personal relationship with.
Form C
Raising money under Title III Crowdfunding?
Pursuant to the JOBS Act and the regulations promulgated by the SEC, in order to raise money using Title III Crowdfunding, a company must prepare a Form C and file it with the SEC 21 days prior to launching an offering. CrowdPay offers a Form C drafting tool that can help you prepare the Form C for a fraction of the time and cost of hiring a traditional law firm.
The Form C you prepare using CrowdPay requires only a light legal review by a lawyer, which can be done by your own lawyer or one of our legal partners. Once signed off on, you can file it with the SEC with the push of a button. WithCrowdPay, you can rest assured that you are complying with all of the SEC’s disclosure requirements.
PPM Risk Factor Tool
The Risk Factor Tool is for companies raising money that don’t want to use a full private placement memorandum or PPM disclosure document. If you are raising money from friends and family or sophisticated investors, you may not need to use a full PPM document, but you should still use a set of well tailored risk factors to protect you and your company from liability if anything goes wrong in the future.
Risk factors are like your insurance policy for a securities offering and a well tailored compressive set of risks can protect you and your company from investor lawsuits and SEC actions. By answering a set of yes or no questions and entering some brief information, then generate a set of risk factors that can be tailored by the company for legal protection.