OVERVIEW OF THE FUTURE FUND APPLICATION PROCESS
FULL DETAILS OF THE FUTURE FUND APPLICATION PROCESS
Step 1: Investor application
The application portal opened at www.uk-futurefund.co.uk at 8:00am on Wednesday 20 May 2020. The application process is investor led and is initiated by any one of the matched investors subscribing not less £12,500, termed the Lead Investor. Where an Investee Company has more than one matched investor, there is no specific requirement as to who should take this role provided that investor is subscribing for not less than £12,500 of notes – specifically, it does not need to be the largest investor. Other than completing the application process, there is no additional obligation or ongoing liability taken on by the Lead Investor.
The Lead Investor will need to set up a Future Fund portal account in order to apply and the application form must include:
- name and contact details for the Investee Company;
- details of the total amount of funding proposed to be raised under the convertible loan note, along with contact details and amounts to be invested by each individual investor including the Lead Investor;
- amount of the loan requested from the Future Fund;
- the stage of equity financing of the Investee Company;
- a statement as to whether the Lead Investor has previously invested in the Investee Company; and
- the reason for applying for a loan from the Future Fund and the intended use of the loan.
The Lead Investor will need to provide the necessary KYC information in relation to each investor so it is useful to have this collated in advance. The Future Fund website sets out in detail what information will be required and needs to be made available.
Step 2: Company confirmation
Once a Lead Investor has submitted the Application, the Investee Company will receive an email with instructions on how to (i) proceed with opening an online account; and (ii) progress the application by confirming the details supplied, the intent to continue the Application and some company specific details, such as turnover and number of employees in the past two financial years.
Step 3: Future Fund assessment
The Future Fund has indicated it then anticipates a minimum period of 21 days to verify the Application and confirm whether it has been approved.
Step 4: Approval mechanics
If the Application is approved, three documents will be sent for electronic signature:
- the convertible loan note in the form published here, populated with all details of the Investee Company and each investor as provided;
- a director's certificate in the form published here, to be signed by a director of the Investee Company confirming the details of the application, the company's eligibility and ability to enter into and perform the convertible loan note; and
- a solicitor's confirmation in the form published here, to be signed by the Investee Company's solicitors, confirming that they hold the subscription monies from all investors (other than the Future Fund) in their client account.
All parties should sign the relevant documentation and the investors (other than the Future Fund) should send their subscription monies to the company solicitor's client account together with relevant KYC information.
Step 5: Completion
Upon receipt of all monies and all signed documentation, the application is complete and the convertible loan note will be dated and become binding. The company's solicitors will be able to release the funds held to the Investee Company. The Future Fund will then fund the company solicitor's client account with the matched funding (no specific timeline has been provided for this), which can be released to the Investee Company immediately once received.