Any advice for what works well in a PPM (and what doesn't)?

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February 05, 2020

by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School in Chapel Hill, NC, USA

Starting the drafting of my PPM and I'm curious what everyone's experience has been with that process. Are there things that have been very effective to be included or, conversely, things that have been included that have found to be not effective or unnecessary? I've seen a couple examples (ex. the Stanford one) but am curious what real world experience has been. Some initial feedback has been that the search fund process isn't as necessary at detail, but more detail into my personal experience and background is. Additionally, if anyone is willing to share theirs, I'd love to see a couple. Thanks in advance for any feedback!

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Reply by a searcher
from Westminster College of Salt Lake City in Salt Lake City, UT, USA
Like so many others, I feel like I've done too many PPMs & can't say that a single one of them has ever been read from cover to cover. This is a RegD 506c PPM for a pooled vehicle (venture fund) that I created with the help of Regulation D Resources. For a reasonable price & a lot of time spent writing all of the non-legal copy, this one came with a website, fundraising portal, backend CRM, document repository, merchant processing for taking investment capital via wire transfer, credit card, etc. When I presented the PPM to the Palico Marketplace "The Marketplace for Funds", which has 10's of thousands of GPs & LPs using the marketplace everyday. Every tier-one VC/PE fund on the planet, from KKR to Bain Capital Ventures to many of the regional micro-first-time-funds. Every institutional investor, family office, endowment, etc. from Calpers to Ontario Teachers Fund, etc. Palico said this to me after I sent them this PPM, "We see every fund, from KKR to crap & they have nothing on your investment docs." I ended up lining Palico up a meeting for Palico with RegD Resources, giving RegD leads & Palico somewhere to send GPs who need help polishing their material before placing them on the marketplace.

https://www.dropbox.com/s/ait4gb85qv1qzxe/Verse%20Capital%20Ventures%2C%20LLC%2012-6v2%20FINAL.pdf?dl=0
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Reply by a searcher
from Westminster College of Salt Lake City in Salt Lake City, UT, USA
Yes! Totally agree. Few will read the PPM, you have to have a pitch deck (no more than 25-pages) & a tear-sheet (one-pager). Combined with 3-yrs. historical financials & 3-yrs projected, this should make up your collateral package. However, I actually believe video will one day replace pitch decks. But we aren't there yet.
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