Time to raise money? Fidelity is here for you. We have workflows that help your company fundraise via SAFEs, Bridge Notes, and/or an Equity Financing.
Shoobx workflows let you set the terms that will apply to the transaction, generate financing documents, and get the necessary approvals. Your investors can review and sign their documents right in the app. Each workflow will capture important terms of the deal for future financing rounds, add the financing documents to your data room, and automatically update your cap table.
Simple Agreements for Future Equity (“SAFEs”) are easy to set up in Shoobx. SAFEs involve a cash investment that will convert to equity at the occurrence of a specified event, such as a preferred stock financing. Unlike other convertible instruments, a SAFE isn’t debt and so doesn’t have a maturity date or an interest rate. The SAFE will simply remain outstanding until the conversion event occurs.
Bridge Notes (or Convertible Notes)
A Bridge Note is a type of convertible debt where an investor lends money to the company in exchange for equity at the next round of financing. The Bridge Note contains the terms of the debt and details how and when it converts into equity. It is accompanied by the Note Purchase Agreement, governs the financing as a whole, and contains representations and warranties by the company. Because convertible debt delays the issuance of equity to a future date, there is no need to establish a valuation for the company.
Using our equity financing workflow is a seamless process that is easier, faster, and cheaper than traditional methods. An Equity Financing involves the issuance of preferred stock in exchange for an investment in the company. The company will amend and restate its Certificate of Incorporation to create a new class of preferred stock, and detail the rights and privileges given to holders of these shares, such as dividends and rights to prevent the company from taking certain actions without investor approval. The Stock Purchase Agreement will outline the terms of the deal, and other documents will detail the new makeup of the company's board, information rights given to investors, and more.
Companies who are interested in conducting their financing this way should reach out to our client services team at Support.Shoobx@fmr.com.
Already closed your financing?
Each of the workflows discussed above has an "upload" path too - meaning you can run the workflow to capture the important terms of the financing, and add the documents to your data room. Your cap table will be updated automatically, and you can even create stock certificates and invite your new investors to view their information in your account.
Fidelity does not provide legal or tax advice.
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