Founders are on a mission to change the world. But while that change could be anything from building mobile delivery robots to engineering new e-commerce platforms, there are other, bigger global problems out there as well, whether it’s helping kids who grow up in disadvantaged conditions to grappling with the fact that 1 in 10 people around the globe still lack ready access to clean drinking water.
As the UK’s number one closer of startup funding rounds, we’re proud to announce that we’ve teamed up with leading charities Epic and charity: water to make it easier than ever for founders to give something back to the world.
The new partnership means that founders using SeedLegals to create their founder agreements or for their funding round can now pledge to donate a percentage of their earnings on a sale or exit of the company, to help solve these problems.
Donations perfect for founders
Epic is a global non-profit focused on changing the lives of disadvantaged children and youth across the globe. charity: water aims to solve the global water crisis that leaves too many people without access to the water they desperately need to survive.
Both charities offer a charitable giving model that lets founders donate a % of their proceeds on a sale of the company. We loved that twist on the old charitable giving formula and, through this new partnership, want to bring it to the attention of more people than ever before.
We know that founders are typically asset-rich and cash-poor. They don’t pay themselves a huge amount of salary and often re-invest what money they have. But if the company sells for a substantial amount one day, they could land up with a nice exit. While founders are building a company, they often don’t have too much time to think about giving back in the form of charity. This pledge can help change that, and if things go well, that benefits the wider community.
How do I do it?
When you create a Founders Agreement on SeedLegals, you’ll see a new Social Impact section which gives you the option of selecting Epic or charity: water. You can select a percentage of their proceeds to donate in the event of a successful exit.
And, when you do your funding round on SeedLegals, you’ll find an equivalent new Social Impact section in the funding round deal terms, where you can mirror that pledge in the Term Sheet and funding round deal documents. By doing that we automatically add wording to the deal documents that provides any necessary investor and shareholder permissions now to let you easily make those donations later. And, your investors get to see your commitment, which we hope will inspire them to find out more and perhaps pledge themselves too.
Giving back to a great cause
Once you’ve done gone ahead and made a pledge, contact Epic or charity: water directly to notify them of your decision. If you wish, they will list you on their website and provide you with regular updates about the crucial work that they are engaged in around the world. Both of these organizations do regular networking events for their donors, featuring luminaries from US and UK companies who have already donated.
When the time comes to make that donation, contact Epic or charity: water again and they’ll organize their side of the deal to make sure that the donation is taken care of. It couldn’t be any easier, nor any more important and, for the recipients, life-changing.
SeedLegals is the touchpoint that a good fraction of all startups and founders in the UK now use. By building this into the SeedLegals workflow and making it an one click option, we hope to substantially increase the number of people who are aware of this opportunity and, hopefully, pledge as a result.
As SeedLegals CEO I like to practise what I preach, so I’m delighted to say that I’m pledging 1% of my proceeds on an exit to each of Epic and charity: water. I hope you will too.