Moorcrofts corporate team has recently assisted the provider of a digital investment platform on a venture capital fund raise through the enterprise investment scheme (EIS). The investment which caters for a total investment in excess of c.£1m will allow our client to enhance its offering and reinforce its position as an emerging player in the private and alternatives investment market.

Moorcrofts’ role

The company was seeking to expand its operations by growing its sales and marketing teams and enhancing the technology on its platform through external investment.  Under tight timescales, Moorcrofts was required to produce a concise subscription and shareholders’ agreement, while acknowledging that there were multiple overseas investors from different jurisdictions that needed to review and query the provisions therein.  

Moorcrofts worked effectively and diligently with the company and the company’s tax advisers in order to identify and manage various issues that arose throughout the process, for example 

1. ensuring the FCA’s capital adequacy requirements were met; 

2. considering an effective manner in which the founder’s shareholder loan could be managed; and

3. ensuring the company procured that each investor self-certified as high net worth individuals.

Outcome

Moorcrofts was able to present the investment terms to the company and proposed investors in a concise manner and draft the accompanying documentation within the timescales to the delight of the client company.  The investment (which caters for a further additional investment) has provided the company with the necessary cash injection that will enable it to reach its short-term objectives.

Key takeaways

Moorcrofts approach to the matter demonstrates the firm’s ability to deliver solutions in the requisite timescales and to be adaptable when issues arise.

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