Private Placement Memorandum

How To Use

This document is required for capital raises of private companies.

It is a pro forma agreement that will stand up as well as any with regards to investor litigation. No document can protect you from litigation in this regard. They can minimize the negative consequences of such a suit.

As an investor, no document can protect you adequately from a poor choice of investments. Investors rarely recover on these matters as a practical matter.  Therefore, decide on the practical merits of the investment and do not rely on any documents to “get you whole”.

  • Make multiple copies. Give one to each investor and keep a record of all signed copies in the corporate records. Be sure to ratify the acceptance of such investments; have the investors sign for their actual stock certificates.