Save time and effort when investing in startups, by simplifying the legal due diligence process and dramatically reducing the negotiation cycle.
As an investor considering a startup investment, you know that both the legal and commercial due diligence is often a time-consuming and expensive process, leading to lengthy delays. One major challenge is the cycle of time it takes for the legal documentation to be produced, reviewed, amended and agreed by all parties. You also need to quickly understand the commercials and have all related documents securely stored in one place.
FounderCatalyst was borne out of a desire to help startups on their funding journey. Ultimately, FounderCatalyst simplifies and manages the entire funding process for both investors and founders, raising everyone's chances of success.
Founder defines round and invites investors.
Create account, and sign NDA, FCA investor disclaimer.
Review founder documents and negotiate.
Agree terms and sign electronically.
There is no charge for signing up and using the platform as an investor.
The most cost-efficient method of completing deal legals – more of your investment goes to the startup rather than lawyers.
Changes can be made dynamically to documents on the platform, with updates in minutes, reducing your legal due diligence / negotiation cycle dramatically.
At the end of the funding round, all founders and investors receive a full completion bible containing all signed documents and the agreed disclosure information.
By being on the FounderCatalyst platform, startups are much more likely to be investment ready.
FounderCatalyst's advance assurance package is included within a founder’s legal funding round at no extra cost.
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)
Once a founder has defined a funding round on the platform, they have the option to invite potential investors to sign up to FounderCatalyst and securely review their documentation. Once you have registered and electronically signed an NDA and FCA disclaimer, you can view the startup’s pitch and other supporting documentation, together with a term sheet and all the legal documents produced by the platform. These can be found in the company’s Intelligent Data Room. A useful summary index of all documents contained in the Intelligent Data Room is also provided.
You then review all the legal documents and decide which items to negotiate and which to accept. Any changes the founder makes to the funding round settings dynamically update the funding round documents in real time, for everyone. As an investor, you are automatically notified when a founder has made changes, with new versions being available to download immediately from the Intelligent Data Room.
When all of the investment documents have been agreed and everyone is happy to proceed, final versions are produced and stored in the Intelligent Data Room. Investors electronically sign via the platform and founders are notified once all documents are signed. Once the founder has marked the funds as being received, share certificates are issued from the platform.
At the end of the funding round, as an investor you also receive a full completion bible containing the definitive contents of the Intelligent Data Room.
“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
“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
“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
“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
“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