Private Placement Offering

I just returned from a conference in Scottsdale, AZ on raising private equity.  While my wife was off riding horses in sunny, 85 degree weather, I was in an internal conference room with no windows refining my knowledge of how to help clients raise capital through private placement offerings while not committing securities fraud in the process.  That is how much I care about my clients!  Thankfully, I did get out in the sunshine on Friday afternoon as we traveled to Sedona and on Saturday while we rooted for the Cubs in a spring training game in Mesa!  So don't feel too bad for me.

The area of private equity law is a minefield.  Wrong moves are easy to make and hard to repair.  The legal jargon of disclaimers and risk factors in a Private Placement Memorandum actually serve good legal purposes (the primary one being the avoidance of securities fraud), even though from a business perspective we all know it is bunk.

One focus of the conference was on the private offering process for businesses seeking investors.  What I like about this process is that it mirrors the mission of my firm – the key is working through and building relationships.  Only approach those with whom you, your broker or your agent have an existing relationship. 

The panel also discussed the difference between consultants and brokers in the equity raise process – an issue I am running into more and more lately.  Folks need to be careful here.   

This week, a colleague and I are back off to Los Angeles to meet with an Angel Investment Group that is inquiring into making investments in two of our clients – both pre-revenue, Indiana technology, SaaS businesses.  We will head back there for presentations in mid-April.

This is exciting stuff!



~~~~~~~
See also:

Funding Law - Buyer's Market
Funding Law - Investing in Midwest Technology Companies
Angels are Still Investing
Private Equity VIII – Environment for Buyers and Sellers

Private Equity in 2009 – Don’t Give Up
Private Equity VII – More on Angel Investors

Private Equity VI - Raising Angel Capital
Private Equity V - Raising Capital and Not Telling Lies
Private Equity IV - Angel Investors Get Picky
Private Equity III
Private Equity II
Private Equity I