Fundings, Debt and Equity
Seed Capital and Growth Capital
All businesses need funding of some form at various stages of their growth.
We can advise on equity crowdfunding, friends and family investments and angel investments for businesses looking to raise funds through the issue of equity and quasi-equity instruments (such as convertible loan notes). We can help with your pitch materials, constitutional documents (which need to be suitable for the type of investor you are looking to attract) and the overall investment process.
We also act for investors, both individuals and angel syndicates.
Our role covers advising on all issues of an early stage equity funding – including confidentiality agreements, rules on financial promotions, sorting out pre-existing shareholder and loan arrangements, and the terms on which the equity investment is to be made (which are normally contained in a shareholders’ agreement and articles of association, and will include (warranties, positive and negative undertakings and management/founder leaver provisions and post-termination restrictive covenants).
We also understand the core issues of SEIS and EIS and will work with you and your specialist tax adviser to structure the investment effectively.
As a business grows, the forms of equity funding become more sophisticated. We are experienced in acting for companies taking on private equity investment, as well as acting for private equity investors. This advice covers the preparation and negotiation of all key documentation – which will include a shareholders’ agreement, articles of association, quasI-equity instruments (such as convertible loan notes), mezzanine and other debt agreements and securities and equity instruments (such as options and warrants).
Debt funding can include bank overdraft and term loan, invoice discounting, asset finance and loan notes. We act for borrowers and lenders and therefore have experience of dealing with both sides of a debt funding. We can advise you on the terms of the loan documentation and the related securities, including the inter-action of the debt funding with existing or new equity funding.