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Investor Hub Published: 
Aug 24, 2020
Updated: Dec 20, 2022
5 min read

SeedLegals Deal Manager: send your next investment proposal easily

SeedLegals’ Deal Manager is the fastest and easiest way to manage the end-to-end legals for your investments. Deal Manager helps you start a funding round, negotiate deal terms and close the deal quickly and easily.

In this article, we’ll take you through the steps on how to use Deal Manager to propose an investment and close the round effortlessly.

Step 1: Sign up and manage your deals

Sign up to SeedLegals to share your investment proposal with the company you’d like to invest in. Our automated platform will create your deal terms, and once agreed, we’ll generate a perfectly matched set of legal documents to close the round, such as:

  • Shareholders Agreement
  • Articles of Association
  • Disclosure letter
  • Board resolution
  • Shareholders resolution
  • SH01

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Step 2: Build your deal

  • On the Deal Manager welcome page, click ‘Investment proposal’ under ‘Start new’
  • Enter the name of the company you’d like to send an investment proposal to:
    • If that company is already on SeedLegals, it will appear in the search results, in which case pick that option and hit ‘Continue’
    • If they’re not on SeedLegals, enter their name, then click ‘Create’ to create them a company profile on SeedLegals 
  • Enter the email addresses and names of the intended recipients, i.e. the founders 
  • Click ‘Add Contact’ at the top of the page
  • Select the pencil icon in ‘Key Deal Terms’ and we’ll prompt you to enter all of the deal terms for this investment

Step 3: Send your investment proposal

When you’ve entered all the terms, you will be taken back to your deal page where you can review your long-form Investment Proposal – just hit ‘Create’ on the Investment Proposal card.

You’ll first see this as a long-form document but you can hit the ‘Terms’ button in the top left-hand corner to see a bullet-point summary of what you are proposing. Here’s an example:

Terms

When you’re ready to proceed:

  • click on the name of the company in the purple banner to go back to your deal page and,
  • hit ‘Send proposal’ 

The founder will receive a notification via email that you’ve sent an Investment Proposal to them. They’ll be asked to view your long-form document by signing in to SeedLegals.

Step 4: Receive the founders’ response

When the founders log in they’ll see your investment proposal waiting for them. They can view your investment proposal, and, if they’d like to proceed, they can click to start a new round. If they already have a round in progress, they can add you to their current round. In this case, they’d be using the existing current round deal terms, not yours.

When the founders create their round, SeedLegals will generate:

  • Full term sheet
  • Disclosure letter
  • Investor consent
  • Pre-emption notice
  • Shareholders Agreement
  • Articles of Association
  • Board resolutions
  • Share certificates
  • SEIS/EIS certificates, if needed.
Screenshot 2022 12 16 124456

The first thing the founder needs to do after receiving your proposal is to complete the Term Sheet, based on the terms you proposed. The founder will be able to accept terms you propose or propose alternatives. Any misalignment on terms between founder and investor is highlighted to the founder on the platform as they build their term sheet.

When the founder has completed the term sheet, they will send it to you via SeedLegals. You’ll receive an email notification from SeedLegals that there is a term sheet to review.

We support you and the founder every step of the way to close the round - our dedicated funding specialists can answer your questions and guide you through the process on the platform.

Step 5: Agree the Term Sheet

When you’ve agreed the term sheet with the founder on SeedLegals, you can e-sign it. The founder can then build the remaining deal documents on SeedLegals to complete the round.

Screenshot 2022 12 13 125217

Step 6: Close the deal

After the Term Sheet is agreed upon, a dedicated SeedLegals funding specialist will work with you and the founder to finalise the remaining deal documents such as Shareholders Agreement, Articles of Association, Disclosure Letter and Board minutes.

The founder will share new documents produced on SeedLegals as and when needed with you. You will be notified of documents to review.

All you’ll need to do is sit back, do a final review and sign the remaining documents to finalise your investment swiftly.

All your deal documents will be kept in one place for you on your SeedLegals account.

You can log into Deal Manager at any time to see live updates on your deals. You can track what documents you need to review and sign them on the platform.

Step 7: Clone a previous round

When you do your next deal on SeedLegals, you can easily clone your terms from a previous deal for your next one (and tweak them if you need to).

When you start a new Investment Proposal, you’ll be asked to either use SeedLegals’ default terms or simply click your previous deal to mimic and edit those terms.

Talk to a funding expert

To find out more about how Deal Manager works and how much it would cost you, please book a call with our team.

 

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