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For funding groups

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.

Why FounderCatalyst for funding groups?

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.

Your fund journey in 4 steps

Founder signs up

Founder defines round and invites the fund to the platform.

Due diligence

Fund undertakes accelerated due diligence.

Negotiate

Fund can see the impact of document changes dynamically.

Close

Participating investors then close on the terms negotiated.

Try it for free

Why funding groupsshould encourage their investees to use FounderCatalyst

Reduce deal timescales

Reduce your legal due diligence / negotiation cycle dramatically by using the ‘fund term sheet’ to focus negotiation efforts on unusual terms.

Reduce deal costs

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.

Add value to members

Providing comfort that the deal on offer is balanced and fair using the ‘fund term sheet’.

Invest more in the startup

The most cost-efficient efficient way of completing deal legals – more of your investment goes to the startup rather than due diligence or legal fees.

Completion bible included

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.

Increase deal cadence

Processing transactions faster allows you and your team to increase your responsiveness and the number of deals you can manage at any one time.

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What documents are produced?

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)

Share Certificates.

Other documents

The platform also creates the following documents:

  • Non-Disclosure Agreement
  • Investor Disclaimer, per Financial Conduct Authority rules

Signature

All documents are generated and signed electronically, via the platform.

Put simply, our fund-specific functionality optimises the raise for you, for your members and for your investee companies

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.

So, how does the platform work?

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.

“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

“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 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

“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

“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 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

“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