Raise ahead of a funding round

A SeedFAST is a type of Advance Subscription Agreement. These are individual, super simple, super quick agreements for future equity in the company where investors will pre-pay for shares that will then be allocated in the next funding round.

A SeedNOTE is a type of Convertible Note. Convertible Notes give investors debt in your company, which will then be converted into shares at the next funding round. Being debt gives an investor more protection if things go wrong, and SeedNOTEs usually have an interest rate which the company pays to the investor.

SeedFASTs & SeedNOTEs should be used as a bridge to a later funding round (that will usually take place within a year), when you need to quickly take in a small amount of investment and you don’t want to commit to a valuation.

The SeedFAST/ NOTE Agreement will convert to equity at the next funding round, when you raise above a preset qualifying amount, or at the long stop date, the date at which it will automatically convert if you don’t raise any more funds.

Yes! SeedFAST Agreements are similar to Convertible Notes, however they aren’t classified as debt and this makes them SEIS and EIS compliant! As long as you convert the SeedFAST investor to equity within six months of them sending over the funds.

Investors can claim their SEIS/EIS tax relief in the tax year in which the shares were issued. This means that the investors won’t be able to claim their relief until the SeedFAST Agreement converts to equity.