Why is it important to document funding?

  • Always formulise any sort of investment (even by friends and family) in order to avoid arguments later!

“Family and friends” funding round

Documentation

  • Board minutes.
  • Shareholder resolutions.
  • Subscriptions letters.
  • Share certificates and other ancillary documents.

How can we help?

  • We can formalise the funding round by preparing these documents.

Typical legal fees: £1,500.

The legal cost associated with such investments will depend on how many family and friends take part. £1,500 assumes a maximum of six family members/friends take part in the round and that they are simply subscribing for shares (i.e. no warranties are given and no specific minority protection is required). Tax and accounting advice is excluded.

More substantial funding rounds

Documentation

  • Term sheet.
  • Investments and Shareholders’ Agreement.
  • Articles of Association.
  • Board minutes.
  • Shareholder resolutions and other ancillary documents.

How can we help?

  • We can help draft or negotiate the term sheet (acting for investor or the founders). 
  • We can help draft, review and negotiate the Investment and Shareholders’ Agreement and the Articles of Association.

Typical legal fees: £7,500- £20,000, depending on the complexity and size of the investment and to what extent assistance with due diligence is required. Tax and accounting advice is excluded.