Fintech Private Placement Memorandums

Fintech and Private Placement Memorandums

PPM was not surprised to note the recent $40 million Series D round of financing raised by WePay, the online payment facilitator. Fintech is a hot sector attracting a lot of private placement investors, and we have seen a demand for fintech private placement memorandums in that arena. Numerous startups are getting into online and mobile payment processing, credit cards, virtual currencies, trading tools, and the related ecosystem of products like security. It was more than 20 years ago when PayPal entered the industry, but there haven’t been many disruptors or innovations since.
WePay relied on some publicity stunts in addition to its product and entrepreneurial gumption to succeed, and it has paid off so far. PitchBook puts the company’s value at $220 million on $24.9 million in revenues in 2014. Along with WePay are many fintech players clamoring for capital, many ranked on Inc. 500‘s list of fastest-growing startups:
WePay is one of many finance-oriented startups dominating the rankings: From the financial services category alone, four are in the top 20 and 27 on the list overall, with a combined $850.7 million in 2014 revenue. Those companies are among the first to notice a huge opportunity to reinvent the financial services sector. That industry is currently the second-biggest target for disruption, after health care, according to a survey of this year’s Inc. 500 CEOs (see “Where the Big Opportunities Live“).

For startups trying to raise capital, especially in increasingly crowded spaces, it is essential to have a professional business plan and investor-ready PPM. Our fintech private placement memorandums (PPMs) not only look good to investors, they ensure entrepreneurs are protected against risk.  A good fintech private placement memorandums will outline an offering that creates the optimal capital structure to maintain control while benefitting from the infusion of funds necessary to scale up. Fintech private placement memorandums should also outline all relevant risks so investors know what they are getting into and the company is protected from any liabilities. Finally, the fintech private placement memorandums we produce at PPM ensure complete and up-to-date regulatory compliance including Blue Sky provisions depending on the location of your startup.

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