If successful, the whole process – from due diligence to money in the company’s bank account – takes around three to four months. #### REVIEW STAGE // 1–2 WEEKS
Note: this is subject to the time taken to receive the materials required for review.
- Funding requirements, and how SyndicateRoom can fit with these, are established
- SyndicateRoom Analysts review the company's business plan/investment memorandum/pitch deck, financial forecasts, funding commitments, historic financials and cap table
- The Analyst presents the company for review by Investment Committee
- The Analyst presents the company for review for Fund Twenty8
- An engagement Letter (contract) is issued to the company upon Investment Committee’s approval
- Company pays set-up fee (see 'Fees' below).
FROM RECEIPT OF SET-UP FEE TO ROUND LAUNCH // 1–3 WEEKS
The company works with their allocated Analyst to prepare the deal for listing.
- Onboarding information is provided by the SyndicateRoom Analyst covering in detail what to expect from the process
- Company is given access to an online portal to upload the information we need for the round 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 drafts 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 the company from repeating large amounts of work preparing new written material about the business while making sure the round meets compliance requirements with ease
- Statements are gathered around, and ideally a couple of quotes from, the current lead investment
- The company is booked in to launch its round at SR Live, where the entrepreneur can pitch to and speak directly with our investors, and from which we will produce a recorded pitch video
- If the company has 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 companies will be able to send further materials (business plan, financials etc) to SyndicateRoom members directly while the pitch is live.
Note: 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 Fund Twenty8. We will be in touch throughout the raise period and work with the company to make the most of the SyndicateRoom experience.
In order for SyndicateRoom platform investments to transact, the round must successfully reach its MTA or be a rolling close round.
SyndicateRoom takes investment payments at point of commitment and performs anti-money laundering (AML) checks on investors who transact via the platform.
Note: 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 the 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 seven-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 seven-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 seven working days for monies to reach your bank account.
Please note the transaction from Fund Twenty8 occurs separately, normally after a further seven days.