Deals

Why a deals module?

We designed the deals to reduce friction, increase control and provide ease of mind through fundraising. An investor portal’s admin(s) set terms and send and receive digitally signed subscription forms while monitoring the process.

deal_dashboard

How to create a deal

The deals module is available to admins and super admins in the navigation bar on the left side of the investor portal. Navigate to the Deals module and follow the steps below to create a new deal.

First, click the button “create deal.” From here, there are three more steps. Navigate through the steps using the top navigation bar or the “next” and “back” buttons.

Deal name

The name of the deal separates one deal from another. The invited parties in the subscription form can see when the deal is sent for signing.

Terms

The terms set the general terms of the deal and are attached to the subscription form. The terms can be edited until the point it’s published. You will find a short description of the fields to fill in terms below.

deal_terms

Shares outstanding are the total number of existing shares before the new issuance (including shares owned by the company, if applicable). Based on the cap table, shares outstanding are automatically calculated and can be modified.

Pre-money valuation valuation is the company’s total value before the issuance of new shares and is where you set the price (price per share x shares outstanding = pre-money valuation). The currency is collected from the cap table.

Price per share is automatically calculated (pre-money valuation divided by the number of shares outstanding).

Capital to raise The money you aim to raise through the issuance of new shares. Note that the system doesn’t limit the potential for over-subscription (investors subscribing for more shares than what is on offer) or under-subscription (investors subscribing for fewer shares than what is on offer). The company handles this.

Shares on offer are automatically calculated (capital to raise divided by the price per share).

Compulsory information Add a PDF file with the information you need to include. The file is attached to the subscription form. Please consult your legal advisor for a review of the documentation you need to provide.

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.

Note that invited investors who have not signed up on Ownersroom might show their email as their name.

deal_participants

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 you need to send a new subscription form to someone who has already signed, please contact us..

Dashboard

The dashboard gives an overview of the deal, deal terms, progress, and participating investors. The deal can be published using the blue button in the top right corner.

Reading the dashboard (when the deal is published)

The dashboard is the starting point for monitoring the deal process once published. The dashboard enables you to track the progress and look up the information for specific participants.

deal_dashboard

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: Communicates the number of days left before the deal deadline. The deadline is for information purposes only. There is no automatic enforcement of the deadline. Therefore, the admin must actively close the deal.

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)

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 issued, 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.

deal_email

You can monitor the process as the invited investors sign the subscription form from the dashboard. You can cancel or close the deal at any point. Closing or canceling the deal will make the subscription form inactive.

deal_signing

Best practices for fundraising with OR

  1. Create a Group for the investors participating in the funding round. Creating groups enables you to easily share deal-specific documents with the investors from the Documents module. Update the group as you gather interest.
  2. 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.
  3. Link directly to your fundraising folder in your announcement (make sure that the same group has access to the folder)
  4. A good practice is to list the deadline and give a heads up that they will receive a subscription form (via Scrive) by email to sign digitally.
  5. Publish the deal from the Deals module and watch the subscription forms pop in! Follow up in advance of the deadline with those who haven’t signed the deal yet.
  6. 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 more details on payments etc.

If this article does not answer your questions, or you have any feedback, please contact support@ownersroom.com.