private placement – n : a fundraising process in which the company raising the money markets and sells securities (debt or equity) directly to a small group of investors – either institutional investors, venture capitalists or angel investors – for investment rather than resale purposes. From a legal perspective, a private placement is a securities offering that is not subject to registration requirements under the Securities Act of 1933.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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