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When raising investment, businesses often focus on the commercial terms such as valuation, share price and voting rights. But the legal details in funding documentation are just as important. One of the most significant elements is the inclusion of warranties. These assurances can directly affect the liability of founders and the confidence of investors

Raising investment is a key milestone for most start-ups and early-stage businesses. Founders often look to funding rounds as a way to secure growth capital, bring in strategic investors and increase their company’s profile. Alongside the commercial aspects, there are important legal requirements to consider, particularly around financial promotions. In this article, we explain how the law regulates investment communications and explain how you can help avoid mistakes that could delay or even prevent a deal.

For founders and early investors, this is one of the biggest trade-offs of equity investment. The business gains the capital it needs to grow, but the original shareholders may own less of the company and have less influence than before. Understanding how dilution works, and how to manage it, is essential for anyone planning a funding round.

The Seed Enterprise Investment Scheme (SEIS Scheme) is designed to help very early-stage companies raise finance by offering tax reliefs to individual investors who buy new shares. It is a government-backed initiative that has played a major role in supporting startups across the UK since its introduction in 2012.

Raising equity investment is exhilarating, but the contracts you sign during a funding round will decide who controls and who ultimately profits from your business. One pair of clauses deserves particular attention: drag-along and tag-along rights.   They dictate what happens to every shareholder’s stake if a buyer makes an offer for the company, and their wording often becomes a sticking point during term sheet negotiations. This article looks at how drag and tag rights work in practice, why they matter…

A term sheet is the roadmap for an equity investment. It is not (and should never become) the definitive legal agreement, but the document that sets the commercial and legal tone for everything that follows. It should reduce misunderstanding, accelerate the raise and save legal fees. However, if it’s drafted in a vague manner, it can lead to disputes, re-negotiation during long-form drafting or, worst of all, a lost investor. Plenty of term sheet template downloads circulate on the internet,…

Raising investment is a key part of growing a business, but the world of funding rounds can feel overwhelming if you're not familiar with the terms and stages involved. Whether you're building a startup from scratch or preparing for rapid scale-up, understanding how each funding round works can help you plan your next move and avoid legal or financial mistakes along the way. This article gives a simple overview of the first four stages of funding: pre-seed funding, seed funding,…

Taking on your first external investment is exciting, but it also raises the legal bar from a hobby project to a regulated company. Angels and early-stage funds will test the strength of your paperwork as closely as they judge your product. The guidance below sets out the key legal checkpoints founders should cover before opening a pre-seed round. What is pre-seed funding? Pre-seed funding is the first outside investment a start-up attracts. It usually ranges from £50,000 to £500,000 and…

Raising seed funding marks the moment when a young company turns from an early experiment to a genuine commercial venture. Friends and family money and pre-seed cash have helped you prove an idea, but seed capital is what lets you build the first real team and launch at pace. Investors are now investing larger amounts, asking tougher questions, and expecting proper legal foundations. The guide below explains what seed funding looks like, which businesses tend to pursue it, and the…

Raising a Series A round is a big step for any growing company. You succeeded with a Seed Funding campaign, you’ve tested your product, brought in early customers, and now you’re looking to scale. This round of investment often brings in millions, and with that level of funding comes more detailed scrutiny and input from investors. This guide explains what Series A funding is, when companies typically raise it, what legal checks to prepare for, and how legal assistance can…