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Duediligenceisaprocessofinvestigationusingastandardofcaretosystematicallyanalyzeaninvestmentopportunity.Aprivateequityinvestmentduediligenceapproachutilizesmultiplelevelsofinvestigationbeginningwithaninitialscreeningthatsimplyidentifieswhethertheinvestmentopportunitymeetsfundamentalrequirementsforaprivateequityinvestment.Dr.GoldsmithservesasPresidentandChiefExecutiveOfficeroftheMississippiTechnologyAllianceandmaybecontactedatrgoldsmithtechnologyalliance.ms.DonotconfusethedetaileddisclosuresandtransactionstructureinaPPMwiththegeneralinformationabusinessplanprovides-theyarenotthesame.TheadvantagefortheentrepreneurraisingcapitalthroughaPPMistheabilitytoofferatraditionalformatmeetinggenerallyacceptedinvestmenttermsandconditionsfamiliartopassiveinvestors.PPMaregenerallyunattractivetoangelinvestorsforthefollowingreasons1angelinvestorspreferamoreactiveroleintheventure2angelinvestorsprefertheopportunitytoinfluencethedesignofthebusinessplanand3angelinvestorsrequiretheopportunitytonegotiatethevaluationandsharepurchasepriceoftheventure.InadditionthePPMapproachlimitstheentrepreneursabilitytochangethecontentoftheprospectusinresponsetochangingmarketorbusinessconditions.RegulationDisagovernmentprogramcreatedundertheSecuritiesActof1933institutedin1982thatallowscompaniestheabilitytoraisecapitalthoughthesaleofequityordebtsecurities.Theprogramsweredesignedtoprovidetwomainthings-anexemptiontosellsecuritiesinaprivatetransactionwithoutregisteringthesecuritiessomethingthathappensinanytransactioninvolvinginvestorsandtheappropriateframeworkanddocumentationfordoingsoproperly.RegulationDconsistsofthreeprogramsRule504providesanexemptionfromSECregistrationfortheofferandsaleofupto1000000ofsecuritiesina12-monthperiodtoanunlimitednumberofaccreditedinvestorsandortoinvestorsinastatewheretheofferingisregisteredinoneormorestatesthatrequireapublicly-filedregistrationstatementanddeliveryofasubstantivedisclosuredocumenttoinvestors.Generalsolicitationoradvertisingtosellthesecuritiesisnotallowed.Rule505providesanexemptionforoffersandsalesofsecuritiestotalingupto5millioninany12-monthperiod.UnderthisexemptionRule505providessaletoanunlimitednumberofaccreditedinvestorsandupto35otherpersonswhodonotneedtosatisfythesophisticationorwealthstandardsassociatedwithotherexemptions.Purchasersmustbuyforinvestmentonlyandnotforresale.Theissuedsecuritiesarerestricted.Consequentlyinvestorsmaynotselltheirsecuritiesforatleastayearwithoutregisteringthetransaction.Generalsolicitationoradvertisingtosellthesecuritiesisnotallowed.Rule506providesanexemptionforraisinganunlimitedamountofcapitalfromaccreditedinvestorsandupto35sophisticatednon-accreditedinvestors.Non-accreditedinvestorseitheraloneorwithapurchaserrepresentativemustbesophisticated-thatistheymusthavesufficientknowledgeandexperienceinfinancialandbusinessmatterstomakethemcapableofevaluatingthemeritsandrisksoftheprospectiveinvestment.Generalsolicitationoradvertisingtosellthesecuritiesisnotallowed.Understandingthesetermsandtheprocesstheyrepresentgivestheentrepreneuragreaterunderstandingofwhatisrequiredinultimatelysecuringaninvestment.PointeInnovation12magazineRegulationDRule504Rule505Rule506