For more than 80 years, both public and private companies have used a large, somewhat intimidating legal document called a “Private Placement Memorandum” or “PPM” to raise capital.
The PPM was originally constructed to provide investors with critical risk disclosures and relevant background data on the companies within which they were investing.
But somewhere over the course of its evolution, the PPM ceased serving its originally intended purpose. Investors began treating PPMs like the fold-out disclosures on the side of a medicine bottle– almost never actually reading them. And companies issuing PPMs began viewing them as a necessary evil as opposed to a valuable part of the capital raising process.
Today, a PPM can take months to prepare, cost a fortune in legal fees (often between $5,000-$50,000 for a small private company), and frequently fail to deliver a “plain English” discussion of the most significant risks to which investors are exposed.
The great irony in all of this is that –while companies continue to believe that a robust PPM full of legal jargon will convey credibility and enhance their access to capital– there is currently a better solution available, which is simpler, less costly and more closely aligned with the true intent of the PPM.
Specifically, advances in technology and changes in securities law have enabled Glass Box to bring to market a private offering portal system to replace the traditional PPM.
Our portal system addresses nearly all of the challenges historically associated with Private Placement Memorandums.
- Gone is the need to wait forever to prepare your offering;
- Gone is the massive legal expense;
- Gone is the disclosure format that can repel investors from engaging in a meaningful dialogue;
- Gone is the need for extended deliberation and debate over what “exemptions from registration” to rely upon;
- And gone are the restrictions on marketing your offering to individuals outside of your personal network.
Glass Box offers a platform to quickly and efficiently raise capital from a targeted investor base, all while remaining fully compliant with today’s securities laws.