Fundraising
Fundraising
Starting a business is an empowering yet daunting time. The start-up costs are generally high and the returns in the first few months are low or non-existent.
Here you will find advice on some of the key areas of concern when raising capital for your business.
Raising capital for your business
Letter of Intent
What is it?
Share Subscription Agreement
What is it?
A share subscription agreement is a document that you will require if you are raising capital for your start-up or allocating shares to employees in your business.
Why is it important?
It sets out:
(a) the number of shares your business is issuing
(b)any conditions such as vesting
(c) the subscription price
(d) the date of issue of the shares and any
(e) company/ founder representations and warranties.
SEIS advance assurance approval application
What is it?
This scheme is designed by the government to encourage private investors to invest in small businesses( i.e. start-ups and very early-stage companies) by providing the investor tax relief for investing. Investors can receive up to 50% tax relief in the investment year.
EIS advance assurance approval application
What is it?
Deed of Adherence
What is it?
A deed of adherence is a document new shareholder of a company sign where a Shareholders’ agreement is already in place.
Online web filing of Companies House Forms
What is it?
You can now file your Companies House forms online and free or charge. By filing online, the changes are generally recorded within 24 hours. For guidance please go to the Companies House website using this link – http://www.companieshouse.gov.uk/ On the right hand side of the home page you will find 3 options : Select the top one that says “file documents online” and click the link that says “Click here to access the web filing service” . This will take you to an information page . Read this and then click the “Continue” button in the bottom right hand corner and follow the instructions.
Investment Agreement
What is it?
Shareholder Agreement
What is it?
Crowdfunding
What is it?
Angel Investment
What is it?
Friends and Family (Bank of Mum and Dad)
What is it?
Many start-ups turn to friends and family to help fund their venture. Don’t take your loved ones for granted – treat them in the same way as you would any formal business lender by providing them with a robust business plan and financial forecast for the next six to 12 months.
Ensure that you have a contract – a contract between the parties will avoid problems further down the line.
Seek legal advice if necessary.
Start-up Loans
What is it?
The government provides business grants to individuals and businesses through national and local organisations that you apply to and who then decide if you are eligible for funding.
For the list of government grants check out the business finance support finder at www.gov.uk