Why a deals module?
We designed Deals to reduce friction, increase control and provide ease of mind through fundraising. Publish the deal, manage the process, allocate, send payment emails and transfer the finished deal-data to the cap table!
General introduction
The Deals-module is based on these principles:
Basic process: Primary share issuance (please get in touch if your process is a bit more complex).
Company in control: You decide who is invited to participate.
Application form w. PoA: The investors apply for shares and provide the company with a Power of Attorney to allocate shares within the limits of the PoA.
Streamlined process: Simple digital signing, analytics to guide actions, avoiding human errors from managing spreadsheets.
Set terms
The deals module is available to admins and super admins in the navigation bar on the left side of the investor portal.
The Terms page is where you define, well, the terms of the deal. Here's what you do:
Create a new deal.
Give the deal a descriptive name, e.g. "Seed funding Q2 2023" (the name is available to participants).
Set deadline: Communicate a deadline to build momentum, the process does not stop automatically when time is up.
Price per share: Use max 2 decimals (there's no need for the company valuation to be exactly the round number you used in the investor deck).
Maximum shares to be issued: A cap on how many new shares you may print (this number x price per share determines the max possible capital to be raised in the round).
Additional information: Upload a single PDF-file with all the other terms of the deal. This document will be included as part of the Deal application form that the investors are invited to sign.
Participants
Select the participants you want to invite to the funding round from the list on the participant’s page. This list includes all members and invited members of the investor portal. Investors must be invited to the portal before participating in a deal.
Publish deal
Publish the deal to send the deal application-email to all the selected participants. Make sure to send an update to inform the recipients before publishing the deal to let them know what to expect.
Once the deal is published, a digital subscription form is generated and sent by email to the selected participants. There is no way to change the terms of a published deal, so make sure to check that all is set correctly before publishing.
Add participants after publishing the deal
After the deal is published there is still possible to add participants by simply clicking the ‘add participants’ button in the dashboard. If a person is responsible for signing on behalf of more than one legal entity, add the investor to the deal again to provide them with yet another deal application form.
Reading the dashboard (when the deal is published)
The dashboard is the starting point for monitoring the deal process. The dashboard becomes "live" when the deal is published, and it enables you to track the progress and look up specific participants.
Total subscription: The current total value of all signed subscriptions (i.e. the total value of the deal if closed right now)
Number of subscribers: The current total number of participants who have signed their subscription form.
Allocation
The system will auto-suggest a maximum allocation within the limit set out by the investor. Simply click on the number and edit to overrule the suggested allocation.
The allocation-data is used to send individualized payment emails and to update the cap table.
Note that it is not possible to allocate fractional shares. The system will round down to nearest full share within the limit set by the investor. You may therefore end up with a maximum allocation that is slightly lower than the number entered by the investor.
Payment emails
When the allocation is all set and done, let each investor know how many shares they've been granted and how much to pay for their allocated shares, with the payment emails feature.
Hit the Create payment email-button, add the payment deadline and your company's designated bank account number.
Use the custom message to say thank you, explain the process going forward (legal filing, updating the cap table etc) and any other relevant information such as extra payment information for international investors etc.
This message is included in the email to all participants.
Each email will include a table with the payment details specified for each investor (as set out in the allocation table).
Make sure to preview the payment email for some specific investors to see exactly what the result will look like.
When all is set, hit the "Send email" button. This will send one email to each participant (not disclosing the other participants' emails).
You can use the payment tracker tool to manually keep track of the total paid capital and who to follow up if payments are missing.
Update the cap table
When payments are in and the capital increase has been filed with the necessary authorities it is time to update the cap table.
Simply hit the "Export" dropdown menu and "Add to cap table".
Set the registration date and edit the name to make it easy to find as a cap table event, if needed.
Hit "Update cap table" to create a cap table event with data from the deal.
When cap table is up to speed and all filings are successfully registered, send an Update to your shareholders (both old and new) to let them know the process is finished and that their portfolio data have been updated accordingly.