Angel Investment and Fundraising
Angel Investment and Fundraising Solicitors in London and Essex
We offer specialist advice to start-ups, founders and angel investors on both equity and debt investments. There are a variety of ways for early-stage companies to structure their pre-seed and seed investments. In our experience, founders do not fully appreciate the importance of obtaining specialist legal advice in this area.
We frequently hear from founders who, understandably, are afraid of incurring the expense of using specialist solicitors. While a cost-effective solution is a top priority at Birdi & Co Solicitors, we regard it as part of our duty to advise founders on the value in using solicitors who are familiar with fundraising transactions.
A key advantage of speaking to a specialist firm of solicitors, such as Birdi & Co Solicitors, is that we understand how fundraising transactions are supposed to be structured and we can offer guidance as to your options and the most effective way to structure your offering. In particular, we are aware of the legal issues that will be considered by your investors which enables us to address any gaps or concerns well in advance of presenting to your investors. The expertise we can bring to your company is invaluable.
Similarly, if you are an investor, it is important to undertake suitable levels of due diligence into your investment targets to ensure that your legal interests are protected, including your entry and exit strategies.
A common misconception is that companies can market or promote their investment proposals to anybody. However, financial promotions (including investments) are regulated by the Financial Conduct Authority under the Financial Services and Markets Act 2000 (FSMA). FSMA controls the way that businesses may seek investment and requires businesses to obtain the appropriate certifications from investors before they receive business plans and investment proposals.
A failure to comply with FSMA is a criminal offence and could result in any earnings you make being treated as the proceeds of a crime under the money laundering regulations. Notwithstanding this serious point, ensuring that you comply with FSMA will verify and increase your credibility and professionalism from your investor’s perspective. Not doing so could have the opposite effect.
We are well-versed in advising and project managing matters involving:
- Pre-Seed (including family and friends) and Seed (including angel investment) Funding
- Term Sheets and Cap Tables
- Founders’ and Investment Agreements (including negotiation of warranties and indemnities)
- Bespoke Articles of Association to comply with EIS/SEIS legislation if applicable
- Share Options (including sweat equity options)
- Loan Note Instruments and Finance Documentation
- Company Secretarial tasks
Our unique selling point is that we understand what clients want from their lawyers. We will manage your expectations proactively, with careful attention to detail while never losing sight of the bigger picture.
While working with us you will have access to our strong network of other professionals such as accountants, independent financial advisers and bankers.
We offer a range of pricing options and will be happy to discuss these with you. As a client-centred law firm, we will be transparent with you about our pricing and actively manage these in line with our agreements.
How we can help with Angel Investment and Fundraising
We will give you expert advice and representation from the start-to-finish of your matter, while making sure that you understand the various stages along the way.
We can guide you through matters including:
- Advising on the best way to structure your cap tables and investment propositions from a legal perspective. We will work with your other advisors, such as accountants, to ensure that the deal structure works from other perspectives (such as tax).
- Reviewing your articles of association to ensure the articles are well placed to allow for current and future rounds of investment.
- Project managing your transaction, based on industry practice, to make sure that all relevant tasks are completed properly and allowing you to focus on day-to-day business matters in the knowledge that your advisers are protecting your interests.
Why you should instruct us for . matters
We put our clients at the centre of our thinking. It is our mission to create an effortless experience and, in return, we hope to create clients for life.
We strive to understand the specific needs of our clients and, using our knowledge and expertise, focus on delivering real-life and practical solutions.
An essential component of our business is being open, honest, and accountable with our clients, and operating at the highest professional standards.
We encourage our people to think creatively and imaginatively in the legal advice we give, as well as the way we provide services.