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How does syndication work on Funderbeam?

How does syndication work on Funderbeam?

Last updated on May 10, 2024

Usually, rounds are initiated by an investor network reaching out to Funderbeam, when the deal has soft validation from the network and they are ready to invest. At this point, the paperwork and other formalities need to be sorted out.

This article will describe the standard phases of syndication on Funderbeam.

 

1. Application and evaluation

The company (Issuer) signs up to the Funderbeam platform and starts a fundraising application from the Dashboard or by navigating to the Raise & list page.

 

To begin, please provide us with some basic information about the project and your company:

  • basic information about the company;
  • legal documents;
  • financials;
  • a basic description and factsheet of the deal and the company.

After this, we will get in touch with more information about listing your company on Funderbeam.

2. Project validation

Once you’ve passed the initial approval, we ask you to provide the investment details and attach the financial and legal documents we need to perform Due Diligence and to evaluate your company:

  • Annual reports for five years (or from founding)
  • Monthly income statement + balance sheet for the period from the last annual report
  • Monthly forecast for the next two years
  • Articles of Association
  • Certificate of Incorporation
  • Shareholders Agreement
  • Capitalisation table

3. Deal specifics

Next, we ask for information that will be the basis for drafting agreements:

  • legal representatives or signatories of the company
  • deal structure and instrument details
  • Lead Investor or syndicate administrator details
  • any debt obligations the company has

We will work with you to ensure all required information is correctly provided. We will then draft and share the agreements:

  • Service agreement
  • Investment agreement
  • Articles of Association or Shareholder Agreement appendix

4. Preparation

Prepare the investment offer page by filling in the investment offer template, adding information about the company, the title, description, product video and cover image for an attractive presentation.

You will also fill out the company’s profile page that will be visible to your investors – your company logo, description, web links, information about the team, and more.

5. Launch

After review and when necessary agreements are signed, the investment offer can be launched for collecting indications from investors. Once the target amount in indications is reached, the round can be closed.

Closing

Formal, legally binding investment proposals can now be sent to investors, and payments are collected.

Meanwhile, the SPV/nominee is created, and the required agreements are finalised and signed. Funds collected from investors can now be transferred to the company.

The company registers new shares and the instruments are issued and shown in investors’ wallets.

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The syndication process in more detail:

View larger version →

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Video Walkthrough

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What will happen after the deal is closed?

Read more about future obligations and supporting platform tools.

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The information about the investment opportunities profiled on this website is provided for general information and marketing purposes only and should not be considered an invitation or inducement to engage in any investment activity. Complete and comprehensive information about an investment opportunity is only available only to investors who have been approved by a Funderbeam group entity.

You should ensure you carefully read the Risk Disclosure Statement before deciding to proceed with any investment or transaction, including making a purchase of securities via the Marketplace. Funderbeam has taken steps to ensure that company and securities offering information is clear, fair and not misleading in accordance with its internal verification procedures. Funderbeam does not provide investment advice or any recommendation to invest. Any investment opportunity on this website should not be considered as an offer to the public and is not directed at or offered to anyone to whom it may not be so directed or offered, or located in a jurisdiction where it is unlawful to do so.

It is important to note that funds are raised, investments are made and trade orders are placed through three investment firm service provider entities: Venturebeam Markets AS (VBAS) (authorised and regulated by the Estonian Financial Supervision Authority under permit 4.1-1/212), Venturebeam Markets Limited (VML (authorised and regulated by the UK Financial Conduct Authority under FRN 794918), and Venturebeam Markets Pte. Ltd., (VB Pte) (licensed and regulated by the Monetary Authority of Singapore under Capital Markets Services (CMS) license CMS100863). VBAS and VML are MIFID investment firms.

This page provides you with an overview of the services provided by different entities belonging to Funderbeam group. In the pages of this website, platform, and documents located on these pages (save to where referred otherwise), we generally refer to the group, which includes group of entities being direct or indirect subsidiaries of Funderbeam Ltd, including VBAS, VML, and VB Pte, as “Funderbeam”, “we”, “us” or “our”.

A Funderbeam client (whether investor or company) is a client of the service provider and under the protection of the requirements of the regulator under which that service provider operates: An EEA client’s service provider is VBAS, a UK/ non-EEA/ non-Singapore client’s service provider is VML, and a Singapore client’s service provider is VB Pte.

The applicable Funderbeam service provider has, prior to the offering of the investment offer on its Platform, verified from public registries in reasonable levels of due diligence, notwithstanding the due diligence which is also performed by the Lead Investor where applicable, which will cover at the minimum: a. that the project owner has no criminal record in respect of infringements of national rules in fields of commercial law, insolvency law, financial services law, anti-money laundering law, fraud law or professional liability obligations in all jurisdictions where practicable for such checks to be conducted; b. that the project owner is not established in a non-cooperative jurisdiction, or in a high-risk third country as set out by the Financial Action Task Force (“FATF”), and/or other government directives in jurisdictions where Venturebeam is operating.

The Marketplace is operated as an organised market by VB Pte., in Singapore as a Recognised Market Operator (RMO) under the supervision of the Monetary Authority of Singapore. VBAS and VML are Trading Members of the RMO’s Marketplace. Access to the Marketplace for EEA and non-EEA clients is only provided by and through such clients’ service provider (ie VBAS or VML). The Marketplace does not provide services directly to investors outside Singapore.

With respect to any securities or investments offered by a US domiciled Fundraising Company, by visiting this site you confirm you are not a US resident or US person (as defined in Regulation S of the U.S. Securities Act of 1933) and you understand and agree that you are not acquiring any Investments for the account or benefit of any such US resident or US person. No investment opportunity in a US domiciled Fundraising Company is directed at US persons.