Submit
Log In Sign Up
Go to General VC Questions
Previous Question Next Question
1
General VC Questions

What is the importance of a PPM for a new VC firm during fundraising?

Asked by:
Community Member
1
0
0
Feb 19, 2024
Hi VC Lab,

I'm in the process of establishing a new VC firm, New Light Ventures, focusing on innovative startups. I am considering the need for a Private Placement Memorandum (PPM) to facilitate our fundraising efforts and ensure compliance.

Could you share insights on:
- What is the importance of a PPM for a new VC firm during fundraising?
- Any best practices or resources for drafting a PPM?

Appreciate your guidance!
1 answer
3
Mike Suprovici
Accepted Answer
Feb 19, 2024
PPMs are not common for small emerging manager funds. They are typically more common in very large funds >$50M. The legal cost is not often justified for small fund sizes. Small emerging firms typically do not manage enough money to where the legal exposure would justify it.
Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Log In
or
Sign Up

Apply to VC Lab Cohort 16

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 16
Related Questions
Venture Studio 4 May 25, 2023 Pro-Rata Negotiations 1 Jul 21, 2023 While presenting fund thesis - what has been the most effective stats to show as secret sauce I.e. IRR, MOIC , TVPI 1 Jun 24, 2024 I'm lost please someone help me 1 Jul 16, 2024 Is there a specific day of the week and time that historically works best to hold events such as Founders Spotlight? If so, why? Thanks 1 Jul 15, 2024