If you are unfamiliar with the term, a PPM or a Private Placement Memorandum is a complex document provided to prospective investors. The printed document describes the critical aspects of a business deal and explains any risks involved in raising capital.

Before the internet, companies needed to prove their legal adherence and sell their credibility through multiple forms and documents such as a PPM. However, in 2020, the internet of things (IoT) dominates the business landscape and continues to revolutionize several business aspects.

Let’s dig deeper into PPM’s for determining whether PPMs still have to go the traditional way.

Do you still need a Traditional PPM?

Under Rule 506(b) or 506(c), when accredited investors buy securities, the issuer does not need to submit any information described in Rule 506(b). The notion is that accredited investors will inquire about information to protect their assets.

While Regulation D does not require an issuer to provide any information, suppose an issuer fails to provide complete or accurate information. In that case, they may be liable to unhappy investors under various state statutory and standard rules and regulations, like the anti-fraud rule of Federal securities.

For that reason, PPMs still exist for providing complete information to prospective investors. Since the document entails all the risks of the investments in detail, an investor cannot claim that he was unaware of the business’s risks and threats.

While we agree that PPMs are important, do we really need a conventional and traditional PPM?

The Benefits of a Digital PPM

Digitization gave birth to a smaller and more functional disclosure agreement, quickly becoming the industry norm. eVest Technology digitizes your PPM as part of its multi-faceted suite of innovative SEC-compliant features. Thanks to this hi-tech licensing platform, you do not have to wait for weeks or spend thousands of dollars for the legal counsel to prepare a PPM template.

The convenient digital process features funding, instant updates, and dividend processing without an advisor, broker, or agent fees. The entire process remains compliant with the Reg D 506 (c) SEC exemptions.

Partner with eVest

At eVest Technology, we leverage technology to revolutionize traditional PPM methods and eliminate any guesswork in the process. You don’t have to go through lengthy paperwork because digitized PPM’s are quick and easy to process.

Here are some of the benefits of using the eVest platform for a digital capital raise:

  • Replaces pricey traditional PPMs
  • Eliminates investor accreditation risk
  • Internal communication and document dissemination through filtered internal email
  • Proprietary information is safe-harbored i.e. bank and contact information
  • Quick and seamless process with your exclusive eVest service rep
  • 95% faster and 95% less expensive

Important Features

  • Dynamic PPM and Landing Page design and presentation
  • Automated dividend processing through ACH
  • Internal investor accreditation
  • No cost operating and subscription agreements
  • eVest Marketplace reaching thousands of prospective investors

Final Thoughts

If you do not want to waste valuable time to go through a lengthy, traditional, and expensive PPM process, the eVest Platform offers exclusive features to make your life easier. The platform serves as a one-stop solution to leverage digital technology for replacing outdated PPMs and capital raising techniques.

Sources


About the Author

Dan Summers

Dan is the Founder and CEO of eVest Technology

Dan is a 30+ year practitioner syndicating in excess of $2B and subsequently underwriting its own IPO. As such, he built along with his team of analysts and programmers a one-of-a-kind seamless and comprehensive platform than manages and organizes an entire capital raise. Summers has built a national reputation for integrity, transparency and approachability. Truly, one-of-a-kind.

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