Who are Private Placement Investors?
With the latest occurrences of accounting fraud in the stock market, the private investment market is an attractive alternative for investors and small businesses. It also allows investors to get involved in a company on the “ground floor” in many cases. A Private Placement investor has the opportunity to keep a closer eye on their investment than a public market investor and has the opportunity to reap large financial benefits by getting in on the ground floor of what could be a hugely successful company. In rare instances a single Angel Investor or small group may fund an entire private offering. In this particular scenario though, the Angels may dictate various terms of the offering and require that the company make modifications to its initial compensation plan. Like all good business transactions though, as long as all parties benefit, everyone comes away satisfied. The aforementioned Angel Investors are just a small part of the equation. The money to fund Private Placements invar
