Sector expertise in PPM

Just my experience, it depends on the region and if the searcher is operating solo. Smaller regions and solo searchers, it is better to analyse 2-3 complementary verticals and target those. Casting a wide net is time consuming. Specific verticals also means you can get through non-interested investors/partners quickly.

There is a balance that needs to be remembered in this case. Because the PPM is a company's principal document for offering its securities to investors in a private placement (presumably qualifying to be exempt from SEC registration), and all investors will look to it to try to find items to challenge if their investment experience is not positive, it is critical that all items included in it be true and complete to provide full disclosure of material facts about the company, and its risks. This is especially true of it is given to any person who is not an "accredited investor," as defined in the federal regulations. Because of this, some practitioners feel that the inclusion of information which is NOT related to the issuer of the securities (such a diving into information in a sector where the company is not intending to invest currently or in the foreseeable future) can be materially misleading to prospective investors. On the other hand, if there is a real possibility that a given sector will be a use of proceeds from the sale of the securities, then disclosures about that sector, its trends and risks, is definitely appropriate. Your friend needs to be extremely clear about what he wants to accomplish, and how he wants to do that, and then make certain that his PPM adequately describes anything which a prospective investor would find necessary in making an informed decision whether or not to make an investment in his company. As every deal is different, he should absolutely work with legal counsel to determine what needs to be included (or not) in his PPM. If he would like some help, please feel free to DM me.