# Closing Investors --- ## Pt 1 - Getting commits from investors --- Investors invest for two reasons --- 1. Greed - They can see tonnes of money  ---- 2. FOMO - They don't want to miss out on something cool  --- 1 - Greed = Compelling business case 2 - FOMO = Hot investors on board, hard to get hold of us ---  ---  --- ### (3) - Get social proof --- #### other investors  --- #### press  --- #### customers love it  --- #### Facts behind what you're doing  --- #### IP etc...  --- #### 5 ways to get Social Proof - other investors - press - customers love it - facts behind what you're doing - IP etc... ---  --- ### Investor meeting --- #### Pitch the opportunity - this is the problem and why there is tonnes of money to make from it - what we do --- #### Don't close immediately - ask what conditions they need. How much - If i can meet them are you in? --- #### Closing - Deliver on promises - Turn into an official commit --- # Term Sheets --- ### ASA - Advanced subscription agreement - Doc to take money outside of a round - SAFE, ASA , SEEDFAST - Seedlegals docs - [Dashboard](https://app.seedlegals.com/companies/c_1ibuncyZu4/funding/dashboard) --- ### Official Investment Round --- Close a lead investor Agree "term sheets" and valuation --- #### Useful clauses to know --- #### Drag along - Right to force others to sell shares if they are dominant --- #### Anti-Dilution - Shares that retain same value and can't be diluted --- #### Pre-emption - First option to buy **new** shares before others --- #### First-refusals - First option to buy **current** shares that are being sold --- #### Preferred shares - Liquidation preferences - Participation multiple [Captable modelling](https://captable.io/company/40115/scenarios) --- See [Key terms](https://www.tamimi.com/law-update-articles/know-your-terms-the-key-terms-of-a-venture-capital-deal/) doc for details --- #### SEIS / EIS --- #### SEIS - 150k per company - Limit of 100k per individual: - 50% off income tax - capital gains reinvestment relief - no capital gains tax - Offset any losses - no inheritance tax --- #### EIS - Limit of 5 million (per year) per company - Can do for several years - £1mill limit per individual: - 30% off income tax - no capital gains tax - Offset any losses - no inheritance tax --- # Other questions?