CASE STUDY: Secretarial Matters
Managing Software Startup’s Private Placement for Strategic Investment
Client Overview
A software start-up sought our expertise in orchestrating their investment rounds through preferential allotment via private placement. Their focus was on efficiency, transparency, and strict adherence to legal and regulatory framework.
Our Approach
We methodically managed pre-investment compliance requirements, ensuring that the groundwork was done. We implemented a strategic framework to navigate the complexities of the investment rounds. Post-investment, our focus remained on ensuring ongoing compliance, thus providing our client with a holistic service that covered every stage of the private placement process.
Key Milestones
Preparation and Planning
- Identify the need for capital.
- Determine the type and terms of securities to be offered.
- Develop a comprehensive business plan and financial statements.
- Establish the offering size and target investors.
Due Diligence
- Conduct due diligence on the company to provide potential investors with accurate information.
- Verify financial statements, business operations, and legal standing
Legal and Regulatory Compliance
- Ensure the whole process complies with various laws.
- Prepare offer documents, such as PAS 4 , and offer letters to each investor
- Drafting amended AOA to contain all the clauses in the amended Shareholders Agreement.
- File necessary regulatory documents with relevant authorities.
Closing
- Determine the final list of investors participating in the private placement.
- Complete all necessary legal and financial paperwork.
- Transfer funds from investors to the company.
Post-Closing Requirements
- Comply with any post-closing obligations outlined in the Share Holders and Share subscription agreements.
- Issue securities to investors.
- Update corporate records and shareholder information.
Results
The culmination of our efforts resulted in a successful private placement for the software start-up. We managed the entire process from inception of the private placement idea right up to post-investment compliance. By leading the compliance at every stage, we not only secured preferential allotments efficiently but also fostered a positive investor perception. The results speak to our commitment to delivering successful outcomes in private placement endeavours, showcasing the effectiveness of our approach in navigating the intricacies of fundraising in the software industry.