To help ensure we can complete your funding round simply and efficiently, you’ll be introduced to our in-house legal team when you reach 75% of your funding target so we can start your legal review.
During the legal review, our legal team will review the documents, warranties and disclosures provided. The purpose of the legal review is to make sure that:
- The Crowd’s investment is being made into a sole company or the top company in a group.
- None of the shareholders in the company have any preferential economic rights, save for a limited right to get back their original investment on a liquidation.
- All key intellectual property is owned by the company, not a founder or other individual.
- All convertible loans and loans of a significant amount are documented.
- The company is not involved in any significant dispute/litigation.
- All investors reflected on the pitch progress bar are paying the same price per share and have the opportunity to receive the same class of shares (depending on amount invested).
- Shares are being offered on a fully-diluted basis.
- The share classes offered on the pitch are reflected in the company’s articles of association.
- The terms that apply to Crowd investors are set out in the articles of association and no Crowd investor is required to sign up to a separate shareholders’/investment agreement. The articles of association will need to take precedence over any shareholders’/investment agreement.
- The company is able to issue share certificates and notices electronically.
To meet the requirements listed above, we may need to ask some more questions and you may need your existing investors to agree to some changes. You will also need to warrant to investors that certain factual statements are correct or, if they are not, disclose why not.
We will work with you to complete this process as quickly as possible. However, in the unlikely event, we are unable to meet the requirements outlined above, your pitch on Crowdcube may need to be cancelled, as set out in the Investee Terms.