Strictly Business

A Business Law Blog for Entrepreneurs, Startups, Venture Capital, and the Private Fund Industry.

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Taylor Wilkins

About Taylor Wilkins

Taylor Wilkins is a private equity and startup attorney at the law firm Riggs Davie PLC in Nashville, Tennessee. Taylor assists private investment funds (e.g., hedge funds, venture capital funds & private equity funds, among others) with fund formation and statutory and regulatory compliance. Taylor also advises startup companies with formation, capital raises, and other day-to-day legal needs.

What is a Private Placement Memorandum?

September 30, 2020 by Taylor Wilkins

A Private Placement Memorandum, or “PPM,” is a disclosure document often used in connection with a private offering of securities. It contains a compilation of information about the company issuing the securities, the terms of the securities, and the risks of investing in those securities. This article explains the legal background underlying why a PPM is commonly used and overviews what is typically included in a PPM.

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Filed Under: Private Equity and Hedge Funds, Startups and Venture Capital Tagged With: PPM, Private Offering, Private Placement, Private Placement Memorandum, Recent Startups

SEC Updates Definition of Accredited Investor

September 3, 2020 by Taylor Wilkins

On August 26, 2020, the Securities and Exchange Commission (“SEC”) issued a press release indicating that it had adopted amendments to the definition of “accredited investor.” The amendments, among other things, added to the list of individuals who qualify as accredited investors, holders in good standing of a Series 7, Series 65, or Series 82 license. The amendments also updated the definition of accredited investor to include, with respect to investments in private funds, natural persons who are “knowledgeable employees” as defined in Rule 3c(5)(a)(4) of the Investment Company Act of 1940. This change could prove significant for private funds with under $5 million is assets under management which wish to allow certain employees to participate in the private fund’s offering.

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Filed Under: Private Equity and Hedge Funds Tagged With: Accredited Investor, Recent, Recent Startups, SEC

Verifying Accredited Investors in a Rule 506(c) Offering

August 27, 2019 by Taylor Wilkins

Companies raising capital that are relying on Rule 506(c) (often informally called “Accredited Investor Crowdfunding”) for their offering of securities have several options as to how to verify whether their investors’ are indeed “accredited investors.” Since most offerings of securities generally rely on Rule 506(b) which allows for the investor to self-verify (e.g., through a simple questionnaire), founders are not as familiar with the verification process of Rule 506(c). This post will briefly explain Rule 506(c) and describe some of the options companies have to verify its investors as accredited investors.

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Filed Under: Startups and Venture Capital Tagged With: Accredited Investor, Recent, Recent Startups, Rule 506(c)

About the editor

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Strictly Business is a business law blog for entrepreneurs, startups, venture capital, and the private fund industry. Its editor is Alexander J. Davie, an attorney at Riggs Davie PLC based in Nashville, Tennessee. His practice focuses on corporate, securities, and business law. He works mainly with technology companies, including startups and emerging companies, and private equity, venture capital, and hedge funds.
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Categories

  • Effective Attorney-Client Relationships
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  • Intellectual Property
  • Mergers & Acquisitions
  • Private Equity and Hedge Funds
  • Startups and Venture Capital
  • Technology

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