Private Placements 101

Sources: U.S. Securities and Exchange Commission, Indiana Secretary of State What is a private placement? A private placement, also sometimes known as an unregistered offering, is a way for companies to raise money from investors without having to conduct a public offering.  Many of the companies that raise money this way are privately held startups.  Private placements are not subject to some of the disclosure requirements and other regulations that public offering are. Who can invest? Generally, private placements are restricted to accredited investors.  Accredited investors are individuals who meet one of two criteria:  they earned more than $200,000 (or $300,00 together with a...

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