What happens when my campaign reaches its target?
If a campaign receives at least 100% of the investment it is seeking, when the entrepreneur closes the campaign for investment, it moves to the “due diligence” assessment. This includes:
– Assisting with all EIS or SEIS advanced assurance paperwork;
– Sending the entrepreneur a due diligence request list, requesting that they send us any contracts, paperwork or other information with respect to general corporate matters, shareholders, financials (including debt), commercial contracts, property, intellectual property and related matters, all of which we review; and
– Interviewing directors, if we deem it necessary.
Once we have completed due diligence, our investment team prepares the relevant legal documentation required to complete the investment. This includes the execution of our standard form subscription and shareholders agreement and the adoption of our standard form articles of association, in each case modified as necessary to reflect any relevant circumstances. For later-stage businesses, it may be possible for us to sign existing shareholder documentation, provided it contains our key investment terms. We also require any intellectual property owned by entrepreneurs individually to be transferred into the company’s name, and any outstanding director loans to be dealt with in an appropriate way before closing. When all the documentation has been signed, we transfer the funds to the company, less our fee.