You know how on Dragons’ Den the dragons bring a pile of money with them? Well, that doesn’t work on the internet, so we partnered with Ascension Ventures to create the online equivalent for the hugely popular Debut Sessions pitch event. We created a special version of an Advanced Subscription Agreement (we call it a SeedFAST) that #DSLive finalists and Ascension both sign before the event.
- If you’re a winner, it commits you to taking Ascension’s investment, and allows them to make that investment instantly, as everything is already signed.
- If you’re not a winner, no problem, the agreement just lapses.
The agreement also lets you raise additional money, beyond Ascension’s investment, in fact it encourages you to do so. And of course we’ll help you sort all that on SeedLegals super-easily and efficiently.
So that you can take part in #DSLive, we need to make sure that the document you create is exactly the agreement that Ascension is expecting to see. Here’s a quick guide that will help you make all the right choices as you go over the Key Terms of the deal.
You will have seen from the template published by Ascension that there will be specific requirements in relation to the size and dilution of your next funding round, don’t worry if anything in this guide that does not match that template. If you follow these steps, all the necessary wording will be there.
- create your company on SeedLegals.
- select Funding in the left menu.
- click to create a new SeedFAST
- in How much are you raising? enter £100,000
- click to add an investor, search for MNL (Ascension) Nominees
- select SEIS as the investment type
Great, your SeedFAST is created!
Next, configure the deal terms for your SeedFAST.
Go to Key Terms, and for each for these questions, select the corresponding choice:
||A variable valuation, based on the next round
|Conversion in next round
||An amount raised in a new round, including all SeedFASTs
|Conversion share class
||The best available share class in the new round
|When would you like the SeedFAST to convert if there’s no new funding round?
||If you’re pitching at #DSLive on February 2021, it’s 31 March 2021
For any other #DSLive, it’s 63 days after your #DSLive event
If in doubt, reach out to Ascension on which date to use
|Bank account details
||Enter your company’s bank details
|Add specific wording for…
||Ascension Ventures Debut Sessions
|Will you provide Warranties that the company own its IP
|Allow a down round?
|Has your investor requested Major Investor Rights?
|Add standard investor disclaimer wording?
|Any additional provisions to add to this agreement?
|Add an explanatory cover page?
Amazing, you’ve just created the agreement that will allow Ascension to instantly invest in your company if you’re a #DSLive winner.
Four more things for you to do:
- Hit the web chat button, let us know you’re done creating it, and we’ll unlock it for you (you’ll only pay us for the legals if you’re a winner and the investment goes ahead, otherwise there’s no charge).
- Carefully read the agreement, of course!
- Sign it
- Click to share it with the Ascension signatories.
Anything you need – help, questions, strategic advice, pitching help, whatever, just hit the web chat button, we’re here to help!