Technology Start-up – Full Service for VC Fundraising
Delayed & reduced fees pending financial success
We were referred to an ex-Google lawyer who was starting a newco in the health industry.
The referral was kindly made by another R&D provider as they were unable to deliver the full suite of services required, most notably SEIS/EIS registration, Accountancy and Financial Projections modelling.
As with most tech start-ups cash was tight and success far from certain.
The newco required a full suite of services delivered at the highest level to enable it to attract VC funding, despite lacking the immediate funds for such professional advice.
We agreed to a basic fee rate at the lowest level for the basic compliance work. We agreed to delay payment of all fees for all services until the first R&D cash refund was available, from which the fees were later deducted.
This gave the start-up full access to a range of services of the highest quality, without an impossible cash outlay.
- Cloud accounting package set up
- VAT registration & returns filing
Venture Capital Funding pre-requisites
- SEIS/EIS registration & negotiation with HMRC
- Share capital accounting (legal work undertaken by solicitors)
- Five Year Financial Forecast suitable for VC presentation developed alongside client
- Review of Investor Pack
R&D Tax Credit planning
- Supplier and client contract reviews for maximisation of R&D relief
- Implementation of offshore structure of software developer remuneration to maximise relief
- Shortened initial accounting period to accelerate R&D tax credit cash refund
- Record-keeping to ensure robust & defensible R&D claims
Conflict with accountancy providers?
As soon as the company has grown and secured appropriate financing, we will recommend a partner firm of accountants to provide the compliance services. May Figures is a niche provider of specialist start-up services for technology companies with skilled advisors at the highest level and is not structured to maintain a broad client base of accounting compliance clients.
Our partner accounting firms understand this, appreciate the open approach to business, and benefit from our referrals as our start-ups grow beyond our core services profile.
This client has referred us to other companies in a similar position, has secured the first round of funding and is growing rapidly since the launch. A genuine success story for the client and May Figures.