How does syndication work on Funderbeam?
Usually, rounds are initiated by an investor network reaching out to Funderbeam, when the deal has soft validation from the network and they are ready to invest. At this point, the paperwork and other formalities need to be sorted out.
The standard phases of syndication on Funderbeam are:
1. Application and evaluation
The company (Issuer) signs up to the Funderbeam platform and submits a fundraising application including:
- Basic information about the company.
- Legal documents.
- A basic description and factsheet of the deal and the company.
Based on the above, Funderbeam carries out required due diligence on the company.
Check out further information:
What are the documents needed when we get our first approval?‘
2. Preparation and agreements
If all is well, the process will continue with sharing the legal draft documents.
- Service agreement
- Investment agreement
- SHA appendix
The company can also start filling the investment offer template.
Read more about investment and admission agreements.
After review, the investment offer can be launched for collecting indications from investors. Once the target amount in indications is reached, the round can be closed.
Read more about access sharing.
Formal, legally binding investment proposals can now be sent to investors, and payments are collected.
Meanwhile, the SPV/nominee is created and required agreements are finalised and signed. Funds collected from investors can now be transferred to the company.
The company registers new shares and the instruments are issued and shown in investors’ wallets.
The syndication process in more detail:
Watch a video walkthrough by our funding manager Louise.
What can and will happen after the deal is closed?
Read more about future obligations and supporting platform tools.