iDisclose has announced the launch of its online tool that enables entrepreneurs to draft institutional-grade disclosure documents for private offerings perfect for equity crowdfunding issuers. Called private placement memorandums (PPMs), iDisclose streamlines the disclosure process for small and startup businesses. According to the Fintech company, the application significantly reduces the time, money and effort spent on PPMs by reallocating the preparatory work back into the hands of the entrepreneur.
“PPMs alone can cost $25,000 to $100,000 and take months to draft, which can often mean the matter of life and death for a startup,” said CEO Georgia Quinn. “As a result, many companies forgo protecting themselves with a PPM because they simply can’t afford it — which is really rolling the dice that something doesn’t go wrong.”
iDisclose describes the features of the application as follows:
- All stages of private financing — seed round, series A, B, C and beyond
- Both operating companies and real estate deals
- All entity types (“C” corporations, LLCs and LLPs)
- Multiple types of securities (debt, convertible debt, preferred and common)
- Retail crowdfunding (intrastate crowdfunding and the SEC-required documents once Title III of the JOBS Act implements)
- Attorneys (To attract new clients, streamline their practice and optimize service capacity)
iDisclose co-founder Doug Ellenoff, a well-known attorney who is prominent in the crowdfunding space, stated;
“With the application, our team has created an affordable yet reliable way for small business owners to access the same, quality legal services we’ve offered to more established companies throughout our careers,” said Ellenoff. “Having practiced securities law for 25 years, it’s exciting to offer a technology that embodies much of our experience through one, user-friendly platform.”
(Editors Note: Georgia Quinn is a Senior Contributor for Crowdfund Insider)