Private equity clubs, angel networks and funds undertaking due diligence on potential investee paperwork is time-consuming, expensive and can delay deal closure. By utilising the FounderCatalyst ‘fund’ role, you dramatically reduce your due diligence overhead…for free.
We pride ourselves in producing quality legal documents which are fair and balanced for both investors and founders. Our principal documents are based on BVCA templates, which have been tailored by our Chief Legal Officer. That said, the core documents - the subscription and shareholders’ agreement and articles of association - can still be over 100 pages in total, so without our ‘fund’ solution due diligence could still be an expensive and time-consuming process.
The ‘fund’ functionality allows a founder or their advisors to invite you to the platform in a fund role. Although fund members may, in due course, become investors, initially the fund functionality allows funds, angel networks and private equity clubs to make an initial assessment of the investment opportunity and decide whether they, or their members, wish to proceed as an investor.
‘Fund’ functionality provides full access to a company’s Intelligent Data Room, plus a customised ‘fund term sheet’ which identifies any key settings or parameters in the round that should be highlighted to your members. This scrutinises dozens of drafting and commercial points within the documents and could include, for example, where a founder has requested specific customisation to their paperwork, or where certain investor rights or consents have been removed.
This feature allows you to fast-track due-diligence and focus negotiation on the terms that matter.
Founder defines round and invites the fund to the platform.
Fund undertakes accelerated due diligence.
Fund can see the impact of document changes dynamically.
Participating investors then close on the terms negotiated.
Reduce your legal due diligence / negotiation cycle dramatically by using the ‘fund term sheet’ to focus negotiation efforts on unusual terms.
You do not need to instruct a lawyer to review hundreds of pages of documents. There is no charge for signing up or using the fund feature.
Providing comfort that the deal on offer is balanced and fair using the ‘fund term sheet’.
The most cost-efficient efficient way of completing deal legals – more of your investment goes to the start-up rather than due diligence or legal fees.
At the end of the funding round, all founders and investors receive a full completion bible containing the definitive contents of the round's Intelligent Data Room, including signed documents.
Processing transactions faster allows you and your team to increase your responsiveness and the number of deals you can manage at any one time.
The platform will produce and automatically populate the following legal documents:
Initial Term Sheet
Founder Service Agreement
IP Assignment Letter
Subscription and Shareholders' Agreement
Articles of Association
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)
The platform also creates the following documents:
All documents are generated and signed electronically, via the platform.
Some angel networks simply don’t have the time or in-house legal expertise to undertake detailed legal due diligence, and don’t have the budget to pay for external advice. By using the FounderCatalyst ‘fund’ role, you can instantly identify key legal aspects of the proposed deal terms that deviate from ‘market standard’ – allowing you to either alert your investing members, or to negotiate on their behalf.
Once a founder has defined a funding round on the FounderCatalyst platform, they can invite potential investors and funds to review their documentation. To streamline the fund review process, the platform provides you with a customised ‘fund term sheet’, which immediately highlights any unusual terms, meaning you do not necessarily need to review the full set of legal documents. This enables you to reduce deal timescales and accelerate the qualification, due diligence and completion processes.
You can then decide which items to negotiate and which to accept. As any changes a founder makes to the legal paperwork take place on the platform, your customised term sheet is updating dynamically and in real time. When all of the legal documents have been agreed and everyone is happy to proceed, the final documents are produced and stored in the round-specific Intelligent Data Room. Investors electronically sign all of the documents via the platform and founders are notified once all is completed.
“FounderCatalyst has proved an outstanding solution for our fundraising efforts. Being new to the entrepreneur world and indeed that of raising investment, the FounderCatalyst platform takes all the headaches (and cost) out of the legal and admin side of the raise, so I could focus on communicating with our investors. The support received from the team was second to none and the instant build paperwork and cap table forecasting made the whole process incredibly organised and clear. While I may not be a fundraising novice anymore, I wouldn't hesitate to use FounderCatalyst again when the time comes for a future investment round.”
Barry Klipp - Founder and CEO, InterLnkd
“I am doing a funding round using another legal paperwork provider but hit an issue with our SEIS/EIS advance assurance being queried. I wasn’t entirely confident in the proposed response to HMRC and someone recommended I speak to the FC team. They helped me to improve my response and their support led to a positive response. Amazingly helpful and knowledgeable team, even for someone who wasn’t a customer. I've recommended them to colleagues already and will be switching to FC for our next round!”
Nicola Telford - CEO & Co-Founder, Views For Change
“FounderCatalyst's services and support has been instrumental in guiding us through the intricacies of SEIS/EIS advance assurance and our legal paperwork, including clarifying the legal jargon. This has significantly contributed to our early stage growth.”
Taliesin Horton-Horsman - Co-founder, TouchImmersion Limited
“FounderCatalyst was an excellent choice, we were delighted with the platform throughout our funding round. From term sheet, legals, due diligence to data room, the process was faultless, keeping deal momentum and presenting a professional interface to our investors.”
Neil Morris - Co-Founder & CEO, Kelpi
“I had no idea about SEIS/EIS and the team clearly explained the process and took the hassle away by managing it end to end. They turned our deck and financial plan into an SEIS/EIS submission in less than a day and managed to get HMRC approval within two days enabling me to focus on my fundraise.”
Kath Clarke - Founder and CEO, BlckBx
“FounderCatalyst have been excellent in supporting us with our first round of fundraising. The specialist knowledge of the team is exceptional, and the customer service is second to none. It has made what can normally be a painful process, simple. I would highly recommend to any fellow founders.”
Olly Rodriguez-Ballinger - Founder and CEO, YesRef
“We were referred to FounderCatalyst and told that they were good, but our advance assurance submission received a positive response from HMRC in 25 hours – that is better than good!”
Geoff Revill - Co-founder & CEO, Safe Space One
“FounderCatalyst is simply brilliant. Not only is the platform powerful & user-friendly; the team have a huge amount of real-world experience and go the extra mile to make your round a success. You'd be mad not to use it!”
Adam Collingburn - Founder, Wuzci
“The FounderCatalyst team turned my advance assurance application around in just 2 working days and we had a positive response back from HMRC within a week. Their assistance with preparing my Investors Deck and forecast model was invaluable. We highly recommend using FounderCatalyst to other founders!”
David Ortega PhD - Founder, Phase Biolabs Ltd
“I sent FounderCatalyst my pitch deck and forecast model. They gave me feedback and then prepared a pack to submit to HMRC for EIS advance assurance. I was amazed that HMRC responded with confirmation of advance assurance before 9:15 the next working day!”
Sarah Cudmore - Founder and CEO, Homegrown Learning Ltd. Collage - The App for Home Schooling
“Founders seeking to raise equity finance - use this service! It is simple to use, reliable and secure, and provides unrivalled value for money. You're in complete control of your fundraising process and timescales.”
Jules & Charlie - Founders, The Nue Co
“We met FounderCatalyst through the Startup 2 Standup Community, and were immediately impressed with their proactive approach to supporting founders. Their guidance from the very start with the advance assurance submission to closing our initial tranche has been truly invaluable, combined with the auto-documentation and flexibility the platform gives you at every stage in the round, makes FC the best choice for pre-seed startups.”
Stuart McDonagh - Co-Founder, RoaRi
“The whole experience from entering details and completing EIS advance assurance forms to signing the final legal documents was so simple and intuitive.”
Dr Thomas Bartley - Founder, Barbal Limited
“All I can say is ‘WOW!’, the FounderCatalyst team provided copious assistance to prepare my SEIS and EIS advance assurance submission. HMRC replied the very next day with our advance assurance”
Chloe Sweden - Founder and CEO, The Green Shoot Inst. Ltd
“FounderCatalyst were first class from start to finish. The help provided in navigating the minefield of SEIS/EIS advance assurance and fundraising legal documentation has been invaluable. They never tired of answered my questions enabling a smooth process for us founders and our investors in as far afield as Australia. I cannot recommend them highly enough.”
Stuart Rex - Founder, OMNI Money Solutions
“I've got a background in law, so I'm comfortable with the mechanics of a funding round. The FounderCatalyst service is unique though - they give you personal support and use their experience to guide you through the key decisions - something only exited founders and angels investors can provide.”
Jennifer Button - Founder & CEO, Emm Technology
“I am a distiller of award-winning gins that are stocked in places like Harrods, but I know little about the funding paperwork and requirements. FC helped me to efficiently produce my funding paperwork in 2 days and I got SEIS advance assurance in less than two weeks.”
Pete Lumber - Master Distiller and Founder, Lumber Distillers Limited
“I had little knowledge of the legal processes of raising investment. Our CCO recommended FounderCatalyst and we have both been very glad we chose this route. The FounderCatalyst team led us through the system personally and the online portal, including electronic document signing, was fantastic.”
Dr Nick Gompertz - Founder and CEO, EarSwitch
“Our experience using FounderCatalyst was quick and easy. FounderCatalyst have turned the onerous task of raising funds into an easy process for not only ourselves, but our investors too. I would recommend FC to anyone raising their seed round.”
Holly Gardner - Founder, Ēstra Home London Limited
“Prior to working with FounderCatalyst, we had conducted the legalities of our first funding round via accountants and lawyers and found a real disconnect between the two. We reached out to FounderCatalyst for round 2 and couldn’t be happier with the service. They are on hand to personally deal with any requests or questions - there is a real accountability of the full process and depth of knowledge that you’re able to leverage. We would not go elsewhere for another round.”
Jake Hardy - Founder, Sokito
“It was a pleasure working with FounderCatalyst. As of the first meeting, Sam was very involved in the whole process and made it very easy for us to get us investor ready faster than we could have ever imagined. We can only recommend the service and are about to use his services soon again.”
Lynn Rosenberger - Co-Founder & CEO, Vite
“FounderCatalyst could not have been more helpful and supportive throughout our SEIS process.They worked diligently to help us get advance assurance much faster than we thought was possible. They went above and beyond the basic advance assurance process, and played a crucial role in helping us to secure funding. I can not recommend FounderCatalyst enough.”
Dan Yates - Co-Founder & CEO, Greener World