#304: iDisclose Brings Offering Document Prep Into the 21st Century

October 1, 2015 - Read the full GoodCrowdinfo article and watch the interview here: http://bit.ly/1LQ0hi5. Subscribe to this podcast on iTunes by clicking here: http://bit.ly/ymotwitunes or on Stitcher by clicking here: http://bit.ly/ymotwstitcher. iDisclose is a new business providing private placement memorandum (PPM) preparation services through a web-based application for enterprises raising money, especially through (broadly defined) crowdfunding sites. In other words, iDisclose is bringing the offering memorandum into the 21st century. Co-Founder Doug Ellenoff is one of the industry’s leading legal voices. The iDisclose platform is designed for all the different players in the entrepreneurial capital raising marketplace: the entrepreneurs or issuers, the investors, the platforms and the lawyers. Doug explains, “iDisclose places the job of disclosure back into the hands of the entrepreneur (who is in the best position to provide all of the necessary details). Rather than provide un-contextualized information about a business to a lawyer, and then relying on the lawyer to prepare the first draft, the entrepreneur responds to an interactive online dialogue to identify the relevant disclosure issues and organizes the information into a legal document that requires limited attorney review.” Of course, investors are the consumers of the product. Doug notes that if investors are reviewing multiple PPMs, the standardized format provides investors with easier “apples to apples comparison.” For the platforms, he says, “iDisclose allows platforms to offer a value-added service to their users and standardizes the disclosure format across the entire platform. This allows the platform to create a vibrant marketplace of lowering the cost of capital for businesses, reducing risks to investors, and protecting the businesses seeking capital.” Finally, Doug says, the lawyers have an easier time of it as well, allowing them to spend more time providing valuable legal advice and review and less time with tedious drafting. Please consider whether a friend or colleague might benefit from this piece and, if so, share it.