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 // 4-5 WEEKS
Working with a SyndicateRoom Associate to prepare the deal for listing.
Onboarding session with an experienced SyndicateRoom Associate via video conference, covering in detail what to expect from the process and how to make your raise a success.
Completion of written questions around your company and the deal, which will form the basis of your online pitch. You will be required to upload relevant files and documents. The Associate will edit your pitch materials to help make them attractive to potential SyndicateRoom investors and ensure they meet regulatory standards surrounding financial promotions.
Lead Investor to provide a written statement about their investment experience, the due diligence they performed on this investment and their reasons for investing in the company, as well as a photo (or a copy of the logo of the investing institution).
Where applicable, we ask for a copy of S/EIS Advanced Assurance or a recent (S)EIS2 form.
Our team will work with you to ensure all promotional content is FCA compliant. This includes giving guidance on how you can engage your own network. We’ll be on hand to make sure marketing content is in line with financial promotion regulations.
If you have patents or proprietary Intellectual Property (IP), our partners Pekama 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.
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.