What
about securities laws?
The U.S. Securities
Exchange Commission (SEC) and state
securities offices allows the officers
and directors of a firm to offer stock
in their firm; however there are certain
restrictions under which this must
be done, including:
a) entrepreneur's
business plan cannot include an offering
of securities, this can only be accomplished
in the body of a PPM,
b) the company
is registered as a corporation or
LLC with the appropriate state division
of corporations before making any
stock offering,
c) the securities
offering is exempt from federal registration
requirements under either SEC Regulation
A, SEC Regulation D, Rule 504, or
SEC Rule 1001,
d) the PPM
must list the state securities self-extracting
statues for each state in which a
potential investor is located,
e) investors
who review PPM’s must be "accredited"
investors (as defined by the SEC),
f) PPMPro
cannot act as a broker/dealer of securities,
g) PPMPro
cannot act as an investment advisor,
and
h) PPMPro
cannot charge additional fees based
upon successful matching or funding.
This service
is designed to operate within these
guidelines. It is important for entrepreneurs
and investors to consult with an attorney
who is knowledgeable and experienced
with state and federal securities
law prior to extending or accepting
an offering of securities. It is ultimately
the entrepreneur's responsibility
to comply with federal and state laws.
How is my company
and personal information protected?
You as the
entrepreneur will primarily control
what personal and business information
is made available to potential investors.
You are free to share as much or as
little information as you feel is
necessary for potential investors
as long as all of the required elements
of a PPM is complete. For sensitive
and confidential information you can
request a confidentiality agreement
be signed prior to disclosing any
trade secrets or technical information.
The goal of
our network is to help you get your
venture in front of potential investors
and to get a face-to-face meeting
with those investors. You decide how
much information is required to do
that.
The information
you enter will be viewed by accredited
investors who have registered with
PPMPro’s Capital Acquisition
Referral Program. Entrepreneurs become
successful not by keeping their business
ideas secret but by sharing that passion
with others. As an entrepreneur you
must recognize that in order to be
in business you must take a certain
level of risk. The process of raising
private capital requires that you
share certain information with potential
investors. We value the privacy of
all our members. We safeguard all
data transmissions through a secure
server, the latest encryption technology,
and confidential member user names
and passwords. For additional information
on how we protect your personal information,
please read our privacy policy. |