Why a deals module?
The deals module is designed to reduce friction, increase control and provide ease of mind through the process of fundraising. The admin(s) of an investor portal set terms, send and receive digitally signed subscription forms while monitoring the process.
How to create a deal
The deals module is available to admins and superadmins in the navigation bar on the left side in an investor portal. Navigate to the Deals module and follow the steps below to create a new deal. If the Deals module does not show up in the navigation bar on the left, please get in touch with email@example.com.
First, click the “create deal” button. From here you will be guided through 3 steps. Navigate through the steps using the navigation bar in the top or with the “next” and “back” buttons.
The deal name is used to separate one deal from another. It is visible to the invited parties in the subscription form when sent for signing.
This is where you set the general terms of the deal, which will be added to the subscription form. Everything can be edited until you publish the deal and the subscription forms are sent out for signing. You will find a short description of the fields to fill in terms below.
Shares outstanding – This is the total number of existing shares in the company before the new issuance (including shares owned by the company itself, if applicable). This is filled in automatically based on the current status of the cap table, but can be edited if needed.
Pre-money valuation – This is the total value of the company before the issuance of new shares, and is effectively where you set the price (price per share x shares outstanding = pre-money valuation).
The currency is automatically fetched from the cap table.
Price per share – This is automatically calculated (pre-money valuation divided by the number of shares outstanding).
Capital to raise – The capital you aim to raise through the issuance of new shares.
Note that the system in itself does not limit the potential for over-subscription (investors subscribing for more shares than what is on offer) or under-subscription (investors subscribing for less shares than what is on offer). This is handled by the company.
Shares on offer – This is automatically calculated (capital to raise divided by the price per share).
Compulsory information - Add a PDF file with the information you need to include. This will be added as an attachment to the subscription form. Please consult your legal advisor for a review of the documentation you need to provide.
Select who to invite to the funding round from the list on the participants-page. This list includes all members and invited members of the investor portal - investors will have to be invited to the portal before being added as a participant in a deal. Note that invited investors may show up with the invited email as their name until they sign up with a user on OwnersRoom.
The dashboard shows an overview of the deal, deal terms, progress, and participating investors. When everything looks correct, the deal can be published using the blue publish-button in the top right corner.
What happens when publishing a deal?
Until the deal is published, you can go back to previous steps and make changes. When the deal is published, however, a digital subscription form is generated and sent by email to the selected participants of the deal (through our digital signing partner Scrive). The investors will be able to fill in and sign the subscription form digitally. At this point the deal is “active” and you can no longer change the terms.
From the dashboard, you will now be able to follow the process as the invited investors sign the subscription form. You can cancel or close the deal at any point. Closing or cancelling the deal will make the link to sign the subscription form inactive.
Reading the dashboard (when the deal is published)
The Dashboard will be the starting point for monitoring the deal process, once published. Here you can track the general progress and look up the information regarding a specific participant.
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.
Unopened invitations: Counts all the recipients who have not yet clicked the link in the mail to open the subscription form.
Days until deadline: Shows the number of days left before the deal-deadline. Note that the deadline is made for information purposes, only. It is up to the admin to actively close a deal at the time they want to - the deadline will not be enforced automatically.
Subscription form status
A subscription form can have status as ‘PENDING’, ‘OPENED’ ‘CLICKED’,‘SIGNED’, or ‘REJECTED’
PENDING: The first status, which is displayed before any other data is received OPENED: The email has been opened (may take some time before updating). CLICKED: The subscription form has been clicked to view, but not yet signed. SIGNED: The subscription form has been signed. REJECTED: The subscription form has been rejected (recipient has declined)
Best practices for fundraising with OR
- Create a Group for the investors participating in the funding round. This enables you to easily share deal-specific documents with the investors from the Documents module. Update the group as you gather interest.
- Announce your new share issuance with the Updates module to your specified group. Only the members of this group will receive your message and you can use the Analytics feature to track who has opened your mail and clicked to log in.
- Link directly to your fundraising folder in your announcement (make sure that the same group has access to the folder)
- It is good practice to list the deadline and give a heads up that they will receive a subscription form (via Scrive) by email that they can sign digitally.
- Publish the deal from the Deals module and watch the subscription forms pop in! Follow up well in advance of the deadline with those who haven’t signed the deal yet.
- When it is time, close the deal from the dashboard in the Deals module. The subscription form will no longer be possible to sign. Send an update to notify that the deal is closed for further subscriptions and that you will come back with further information on payments etc.
If this article did not answer your questions, or you have any feedback, please get in touch at firstname.lastname@example.org.