When you are raising capital for your business, it’s always a good idea to think about maintaining the confidentiality of information you give to your investors.
An Information Memorandum Disclaimer sets out your expectation that information provided to these potential investors remains confidential between you and them, and should only be used in the consideration of investment in your business.
Here’s what you need to know about Information Memorandum Disclaimers.
What Is An Information Memorandum Disclaimer?
When you reach out to investors, often you’ll provide some form of a “pitch deck” that sets out your proposal and why an investor should buy into your business. This “deck” will typically include detailed and accurate information about your company. This is called an Information Memorandum.
A disclaimer on an Information Memorandum is something you can add onto this document, ensuring the confidentiality of the information provided to potential investors.
This disclaimer is a technically written paragraph that ensures that the information will not be disclosed to any parties outside of the potential investor’s consideration of investment in your business.
Why Do I Need An Information Memorandum Disclaimer?
When you’re going into a large capital raise or when you’re seeking later stage investment after initial raises, it is common to have an Information Memorandum.
If you have an Information Memorandum that you intend to provide to certain investors, then you should always have a disclaimer to go with it. This will ensure that everything remains confidential and that the detailed information provided in the Information Memorandum cannot be leaked without consequence.
A good lawyer will be able to draft an Information Memorandum Disclaimer in consideration of your Information Memorandum. This is important to ensure that you and your potential investors are clear on what is being agreed upon in relation to disclosures of information.
At Sprintlaw, we focus on drafting comprehensive, easy to understand and user-friendly contracts.
Feel free to get in touch with us to get things started with your Information Memorandum Disclaimer! Our friendly team can be reached at [email protected].
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