Private Market Guide for founders
The Benefits of Private Market Syndication for Company Founders
Funderbeam is a global platform that enables companies to run private syndications and secondaries whilst offering a unique option of liquidity for investors.
Funderbeam can provide companies with a private and secure space to syndicate funds from chosen investor network – covering the full process from deal setup, indication handling, agreements, instrument holding, and money settlements.
This all is powered by investment firm licenses for the European Economic area and the UK.
The platform has convenient built-in tools to manage your fundraising cycle from the initial preparation to the later administration, such as having complete visibility of all beneficiary shareholders, online shareholder voting, corporate actions, investor reporting, and information sharing, all in one place.
What are the benefits to you as a Founder?
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Clean cap table – one entry, infinite shareholder. Using an SPV or nominee structure means one entry in your cap table. Even if investors carry out transactions behind the nominee there is no impact on your books.
What is the process of onboarding a company for a funding round?
The process of running a private investment round on Funderbeam consists of 4 main phases:
1. Apply for funding
2. Preparation and signing of agreements
3. Launching the investment offer
4. Closing
Please make sure that:
✓ You have the required documents.
✓ You understand what agreements you will be signing.
✓ You understand how to manage your investor list.
Watch a demo video or read more about syndication on Funderbeam.
FAQs
How is the valuation of a company determined?
The company determines the valuation with advice from consultants or relevant investment parties.
Who brings the investors to my syndicate?
The investment network i.e. your BAN or accelerator brings the investors to your syndicate, but you can also invite investors into the round.
What are the fees?
Please see the default fee schedule.
When applicable, what is the carry fee?
At Funderbeam, the carry fee is calculated on a per-share basis. The Lead Investor and/or Funderbeam receives a carry fee, rather than profit, which is common in venture capital.
In case of an exit, the Lead Investor is eligible to sell carry shares and collect the profit from the investment.