Once a commitment has been secured from a lead investor, a comprehensive due diligence review is completed. The broker-dealer that acts as the placement agent receives a private placement fee from the target company based on the total capital raised. The broker-dealer subsidiary that acts as the placement agent receives a private placement fee from the target company based on the total capital raised.
Members can view the investment memorandum and related due diligence in a standardized format.
Once an offering has been posted, members have the opportunity to perform their own analysis. Members may screen offerings at no risk to themselves, and without obligation to invest. Members who decide to invest and indicate their interest by designating the amount of their investment in their personal home page. The member signs and returns the subscription documents to the broker-dealer which is acting as placement agent for that transaction. This is the only part of the offering that requires a member to use the mail.