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66% of pre-seed rounds were done in ASAs (Advanced SubscriptionAgreements, the UK’s equivalent to SAFEs) The average pre-seed round is about $600,000 The average number of investors per round dropped from 10-11 in 2020-2021 to 6-7 in 2024 Average Pre-money valuation in UK pre-seed rounds stands at approximately $4.8M
Presumably, each stockholder will be required to execute a subscriptionagreement and/or stockholders’ agreement to address key issues such as transfer restrictions, rights of first refusal, drag-along rights, etc. Second, having hundreds of stockholders is an administrative nightmare and will be time-consuming and costly.
According to a CBS Marketwatch article : Under the accounting method used in the past, the company would recognize a full month’s revenue from a subscriptionagreement, even if a deal was sealed in the middle of the month, for example. Its auditor, PWC, suggested that it change its revenue recognition policy.
According to a CBS Marketwatch article : Under the accounting method used in the past, the company would recognize a full month’s revenue from a subscriptionagreement, even if a deal was sealed in the middle of the month, for example. Its auditor, PWC, suggested that it change its revenue recognition policy.
One short cut that I can tolerate is if you are truly raising funds from family members that you trust, you can use a really simple promissory note for a convertible debt round or a really simple subscriptionagreement for an equity round (email me if you would like forms).
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