Finders Fee Agreement For Raising Capital Template for England and Wales

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Key Requirements PROMPT example:

Finders Fee Agreement For Raising Capital

"I need a Finder's Fee Agreement For Raising Capital for my tech startup seeking Series A funding of £5 million, with an exclusive arrangement and a success fee structure of 3% for introductions that lead to investment, commencing March 2025."

Document background
The Finder's Fee Agreement For Raising Capital is essential for businesses seeking to formalize arrangements with individuals or entities who assist in securing investment or funding. This agreement, governed by English and Welsh law, provides clarity on compensation structures, typically including both retainer and success fees, while ensuring compliance with UK financial regulations. It's particularly important for protecting both parties' interests and establishing clear parameters around the capital raising process, including exclusivity periods, target investors, and specific services to be provided. The document addresses key regulatory considerations under the Financial Services and Markets Act 2000 and FCA guidelines.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of finder's services and obligations

5. Fee Structure: Details of fees, calculation methods, and payment terms

6. Payment Terms: Timing and method of payment, including any conditions precedent

7. Term and Termination: Duration of agreement and termination provisions

8. Confidentiality: Protection of confidential information

Optional Sections

1. Exclusivity: Terms of exclusive arrangement, used when finder is granted exclusive rights

2. Success Fee Provisions: Additional compensation based on successful outcomes, used when including performance-based compensation

3. Regulatory Compliance: Specific regulatory obligations and compliance requirements, used when finder's activities may touch regulated areas

4. Non-Circumvention: Prevention of direct dealings bypassing the finder, used when protecting finder's interests in future transactions

Suggested Schedules

1. Fee Schedule: Detailed breakdown of fee structure and calculations

2. Services Description: Detailed scope of services to be provided

3. Target Investors List: List of potential investors if specifically targeted

4. Compliance Requirements: Specific regulatory requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Financial Services and Markets Act 2000 (FSMA): Primary legislation regulating financial activities in the UK. Key focus on Section 19 which prohibits carrying out regulated activities without proper authorization. Essential for ensuring the finder's activities comply with regulatory requirements.

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Defines and specifies what constitutes regulated activities, particularly relevant for arranging deals in investments. Critical for determining whether the finder's activities fall within regulated territory requiring authorization.

FCA Regulations: Regulatory framework overseen by the Financial Conduct Authority, covering requirements for authorization, financial promotions, and rules regarding introducing potential investors.

Bribery Act 2010: Legislation ensuring fee arrangements don't constitute improper payments and requiring transparency in financial arrangements between parties.

Money Laundering Regulations 2017: Regulations governing anti-money laundering requirements, particularly relevant if the finder is involved in handling funds or conducting due diligence.

Companies Act 2006: Key legislation covering corporate disclosure requirements and directors' duties regarding financial arrangements and company operations.

Contract Law Principles: Common law principles governing contract formation, consideration, terms and conditions, and remedies for breach. Essential for structuring the fundamental agreement.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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