If successful, the whole process from start to finish, from due diligence to money in the company’s bank account, can take around three to four months.
REVIEW STAGE // 1-2 WEEKS
(subject to time taken to receive required materials for review)
Establishing funding requirements and how SyndicateRoom could fit in.
SyndicateRoom Analyst’s review of:
business plan/investment memorandum/pitch deck, and financial forecasts;
funding commitments, historic financials, and cap table.
Review by Investment Committee.
Review for Fund Twenty8.
Engagement Letter (contract) issued to you upon Investment Committee’s approval.
Following signature of Engagement Letter, payment of set-up fee (see Fees below).
FROM RECEIPT OF SET-UP FEE TO “GOING LIVE” ON THE PLATFORM // 1-3 WEEKS
Working with your SyndicateRoom Analyst to prepare the deal for listing.
- Onboarding information provided by the SyndicateRoom Analyst covering in detail what to expect from the process.
- You will be given access to your own online portal, where you can provide us with the information we need to go live, such as: documentation for AML & KYC on company directors, confirmation of funding round financial information, and proof of S/EIS eligibility (if applicable).
- SyndicateRoom will draft its own written summary of the investment opportunity for SR members which will be hosted on the platform and provide information on our analysis of the deal. Investors can then request further documents from the company if they wish. By doing this, we save you from repeating large amounts of work preparing new written material about your business and can make sure we meet compliance requirements with ease.
- Gathering statements around, and ideally a couple of quotes from, the current lead investment.
- Booking your place at SR Live, where you can pitch to and speak directly with our investors, and from which we will produce a recorded pitch video.
- If you have patents or proprietary Intellectual Property (IP), we will conduct a review of the details and provide an FCA-compliant report for display on the deal page. Please note that you will be able to send further materials of your own (business plan, financials, etc) to SyndicateRoom members directly while the pitch is live. Additionally, if the company is not live on the platform within two months from the issuing of our engagement letter, it is likely that our Investment Committee will have to revisit aspects of the deal to ensure there have been no material changes, and thus permit the going live process to continue.
LIVE PERIOD // 4-12 WEEKS
Rounds are live for a period of time determined by how much the company has left to raise to reach its Minimum Target Amount (MTA):
- Up to £150,000 - 4 weeks
- £150,000 - £300,000 - 8 weeks
- £300,000 - £500,000 - 10 weeks
- £500,000 or more - 12 weeks
During this time, investors can view the pitch online and commit funds to the round. EIS-eligible companies can also attract investment from SyndicateRoom’s FundTwenty8 (see FundTwenty8). We will be in touch throughout the raise period and work with you to make the most of your SyndicateRoom experience.
In order for SyndicateRoom platform investments to transact, the round must successfully reach its MTA or be a soft/rolling close (see separate FAQ).
SyndicateRoom takes investment payments at point of commitment and performs anti-money laundering (AML) checks on investors who transact via the platform.
Please note that we can process investments from a number of countries outside the UK, although there are exceptions, notably the US and Canada. Please ask us if you require more specific information about this.
CLOSURE PERIOD // 2–3 WEEKS
Once a company has reached its MTA we will begin a legal review of the Company’s Articles of Association and Shareholders Agreement (if your company has one), as well as any other legal documents pertinent to the round.
OTHER INVESTMENTS IN THE ROUND
After a deal closes on the platform, there is a 7 day cooling-off period. During this time, we ask you to send through proof of all the investments the company has processed as part of this round (i.e. all excluding SyndicateRoom investments). We can also accept evidence that payments are held in escrow by an independent, professional third party (e.g. law or accountancy firm).
FINAL INVESTOR APPROVALS
SyndicateRoom investors have a further 7 day period during which to review the company’s legal documents after SyndicateRoom’s legal review, and have a right to cancel their investment during this period if they wish (albeit cancellation at this stage is rare).
Once the above steps have been successfully completed, investment monies can be released. It takes approximately 7 working days for monies to reach your bank account.
Please note the transaction from Fund Twenty8 occurs separately, normally after a further 7 days.