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Investor Hub Aug 24, 2020 5 min read

Using SeedLegals Deal Manager to send your next investment proposal

Nicholas Richards
Nicholas Richards

Welcome to Deal Manager, the fastest and easiest way to create investment proposals, manage rounds in progress, and close your next round. Deal Manager lets you initiate a funding round, then negotiate deal terms from Term Sheet to round close.

Lead with your investment proposal on SeedLegals, share it with the company you’re interested in investing in, then the SeedLegals platform will use deals terms you’ve agreed to produce the perfectly matched set of legal documents (Shareholders Agreement, Articles, Disclosure Letter, board minutes, etc.) to close the round. 

Here’s the step-by-step guide on how to use SeedLegals Deal Manager to send your next investment proposal.

Step 1: Sign up and switch on Deal Manager 

Sign-up for free to SeedLegals and create your user profile, then add your company.

  • If you’ve invested using SeedLegals already, we’re probably already enabled Deal Manager for you.
  • If not, go to Settings > Display and enable Deal Manager, and then click Save changes.
  • For now, Deal Manager only supports company investors (e.g. funds, VCs, nominees companies, etc.). If you’re an angel investor investing personally you can still use Deal Manager, just create a company in your name and invest through that.

Deal Mgr Enable

 

Step 2: Build your deal

You should then land on the Deal Manager welcome page, click Get started. The platform will then ask you to name 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.
  • If it’s not on SeedLegals, enter the name, then click Create to create that company on SeedLegals

Next, click Create investment proposal at the bottom. 

Create Inv Proposal

 

You should then land on your Deal Manager home page.

Deal page

 

On here you should enter the email and names of the intended recipients, i.e. the founders (click Add Contact at the top of the page).

Next, click 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

Once you’ve finished entering all the terms, you will be taken back to your deal page where you now will be able to review your long-form Investment Proposal – just hit ‘Create’ on the Investment Proposal card. You’ll first be shown this as a long-form doc but you can hit the ‘Terms’ button in the top left hand corner to see a bullet-point summary of what you are proposing as in the image below. 

Terms View

Once you are ready to proceed, click on the name of the company in the purple banner to go back to your deal page and then hit ‘Send proposal’ at the bottom of the screen. 

The founder will receive a notification via e-mail that you have sent an Investment Proposal to them, and they will be asked to view your long-form document by signing in for free to SeedLegals.

Step 4: Receive the founders’ response

When the founders log in they’ll see your investment proposal waiting for them:

Deal Manager Incoming

They can view your investment proposal, and, if they’re interested enough to proceed, they can click to start a new round, or, if they already have a round in progress, add you to their current round (in this case using the existing current round deal terms, not yours).

When the founders create their round, SeedLegals will generate the full term sheet, disclosure letter, investor consent, pre-emption notice, shareholders agreement, articles, resolutions, share certificates and S-EIS certificates if needed. We support the founder every step of the way to close their round, no need for them to find a law firm. 

But the first thing they’ll need to do is complete the Term Sheet, based on terms you proposed. Here 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 platform as they go through building their term sheet.

Once the founder has completed the term sheet, they will send it to you via SeedLegals. You will receive an e-mail notification from SeedLegals that there is a term sheet to review. 

Step 5: Agree the Term Sheet

Once you’ve agreed the term sheet with the founder on SeedLegals, you can e-sign this document on SeedLegals. The founder can then proceed to build the remaining deal docs on platform to complete the round. Again, the founder will share new documents produced on SeedLegals as and when needed with you, at which point you will be notified of documents to review. 

You can log into Deal Manager at any time which will also give you live update as to where your deals are, letting you know what documents you need to review and sign on the platform. Once done, all your deal legals will be kept in one place for you on your SeedLegals account. 

Deal Mgr status

 

Step 6: 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 if you need). 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 those terms (you’ll still be able to tweak any term you like).

Clone

What does Deal Manager cost?

Deal Manager is totally free, any investor can use it to send investment proposals and manage rounds you’re investing in. As an investor, your only cost is the £29/month subscription (first 30 days free) that you’ll need for your investment company on SeedLegals.

The company you’re investing in will pay the standard SeedLegals fees for their funding round, and SeedLegals will provide the company with expert funding and legal advice, all included. If you want to use a lawyer to review the deal docs on your side, sure, that’s your separate cost.

Sign up to SeedLegals and get started right now, or hit the chat button for any questions or to arrange a demo.

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