FounderCatalyst for lawyers and other advisors

I have worked as a lawyer within this sector for over 20 years, so understand from personal experience why a solution like FounderCatalyst is so exciting for advisors and businesses. It provides a secure, high quality online platform through which to manage and execute early stage investments for clients on a profitable basis. But is also allows affordable, quality advice and documents to be provided to businesses that may not otherwise have access to them, ensuring they start their journey in the best possible way.

How often do you turn away early stage equity investment work because you can’t make the fees work? Or perhaps you don’t have all of the required in-house expertise?

I have seen many opportunities come and go during the course of my career, where it’s simply not been possible to bridge the financial gap between advisor and client. This is a great shame for many reasons, not least that many of those opportunities could otherwise had led onto years of enjoyable and successful collaboration for both parties.

FounderCatalyst provides a solution to this problem.

Our secure online platform works by automating the legal documentation and transaction management process, removing much of the cost associated with document production, deal management and administration. This frees up an advisor’s time to focus on delivering a high quality, low cost transaction to clients, whilst retaining profitability and competitiveness. For a fixed fee of £1,495 plus VAT, which can be disbursed by you or paid directly by your client, you have full access to the online process, and are able to invite your client and (if required) its other advisors into your account. Currently, this also includes (at no extra cost) an S/EIS advance assurance service from us, should you need it.

Our low cost solution, which can provide a complete set of tailored documents ready to sign within 30 minutes, allows you to bill clients separately for the time you spend with them on the process. The overall cost is still significantly lower than traditional fees charged by advisors. Removing the need to prepare and tailor documents alone saves £1,000s.

The complete set of documents provided on the platform comprises:

• Initial term sheet
• Founder service agreement
• IP assignment letter
• Subscription and shareholders' agreement (based on the BVCA’s model document)
• Articles of association (based on the BVCA’s model document)
• Cap table: one for before the investment, and one for after it
• Final term sheet, summarising all key points agreed with confirmed investors
• Resolutions for both shareholders and directors
• Disclosure letter (with the disclosure bundle also managed on the online platform)
• Share certificates.

Your account provides a secure ‘Intelligent Data Room’, in which you and your client are able to store and manage as many documents and as much other information as you want.

The disclosure process is made simple – specific disclosures can be added directly into your disclosure letter online, and a supporting disclosure bundle can be agreed within your Intelligent Data Room.

Investors are only provided access to the online account once they have been invited by you or your client, and have signed an investor disclaimer and an NDA.

Once all documents are agreed, they are sent out for electronic signature with signed/dated copies provided for your records. The platform also produces signed share certificates.

If you would like to know more, please do contact us at info@foundercatalyst.com and we would be delighted to have a chat.