Since September 2013 start-ups and other companies have been able to solicit the public for debt and equity financing using exempt or private offerings. This is the first time in 80 years the SEC has permitted general solicitation of “private” placements. As a result, an entire new industry, with a new asset class, has come into being.
But how to find serious investors in this gold rush? There are over 350 crowdfunding portals or web sites and hundreds more peer-to-peer web sites where investors can be found. So what does the entrepreneur say to whom? How much detail does he or she communicate on which platforms?
How much information should be in the pitch book or elevator video? And on what platforms?
Once you have an interested accredited investor, what is your story and how is it presented? Once you get in the front door, what do you say?
Rule 506 Package
For clients seeking funding Private Placement Advisors (PPA) will offer a 4-page web site with an prospective investor-email address; a 3 page pitch deck; a 5 minute audio pitch deck; a 60 second video pitch deck; a summary of the offering at PPA’s LinkedIn discussion group, Crowdfunding for Equity and Debt; and a summary of the offering on our blog, regDconsumersreport.com. PPA will also provide presentation services by means of Prezi or Sway and selectively use web apps such as Haiku Deck and Canva for special prospective investors such self-directed IRA investors.
Pitch decks and presentations are presented to platforms identified by us and, as appropriate, presented as “sponsored by Private Placement Advisor LLC,” subject to each client's understanding with PPA.
PPA also drafts all the offering documents and files the reg D federal and state filings, and well as draft the “verification letter” required under Rule 506(c, if applicable.
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