{"id":11466,"date":"2021-12-16T14:50:49","date_gmt":"2021-12-16T14:50:49","guid":{"rendered":"https:\/\/www.seedrs.com\/insights\/?page_id=11466"},"modified":"2024-07-30T10:45:17","modified_gmt":"2024-07-30T09:45:17","slug":"due-diligence-the-seedrs-standard","status":"publish","type":"page","link":"https:\/\/europe.republic.com\/insights\/due-diligence-the-seedrs-standard","title":{"rendered":"Due diligence: The Seedrs Standard"},"content":{"rendered":"

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Due diligence: The Republic Europe Standard<\/h1>\n

At Republic Europe we aim to be as transparent as possible about everything we do \u2013 for both investors and entrepreneurs. To the majority of people who aren\u2019t in the legal or investment profession, due diligence is an unknown, impenetrable area. So to demystify it, we\u2019ve created a concise guide that provides a quick overview and breaks down the process into six simple points.<\/p>\n

[\/vc_wp_text][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” content_placement=”middle”][vc_column][vc_wp_text title=”The seal of approval”]<\/p>\n

For a business to be given the go-ahead to raise on Republic Europe is a bit like getting a seal of approval. Although some businesses may find it a little easier to raise on some other platforms, if a founder chooses Republic Europe, it demonstrates that they believe that they have nothing to hide from our enhanced scrutiny. And that\u2019s exactly why many investors are so interested in the steady stream of opportunities that are available on Seedrs.<\/p>\n

We provide all types of investors with the opportunity to invest in exciting early-stage and growth businesses, structuring deals to ensure that when there are returns, everyone shares in the success \u2013 including investors and founders.<\/p>\n

[\/vc_wp_text][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” content_placement=”middle” css=”.vc_custom_1637149915498{padding-bottom: 64px !important;background-color: #f9fafb !important;}”][vc_column][vc_wp_text title=”Our six key due diligence components”]Our approach to due diligence is based on both best practice and our own experience. The team puts a heck of a lot of detailed, painstaking work into this area, but here\u2019s a simplified, quick overview of the six key things that we do as part of our standard processes:[\/vc_wp_text][vc_row_inner gap=”25″ css=”.vc_custom_1637146517262{padding-top: 24px !important;padding-right: 24px !important;padding-left: 24px !important;background-color: #ffffff !important;}”][vc_column_inner width=”1\/2″ css=”.vc_custom_1637145547940{background-color: #ffffff !important;}”][vc_single_image image=”11475″ img_size=”64×64″][vc_column_text css=”.vc_custom_1639666245400{margin-top: -24px !important;}”]<\/p>\n

1. Verification<\/h4>\n

We check all information and claims included in a company\u2019s pitch before we allow the campaign to open to investors. We ensure that each statement is fair, clear and not misleading. Where there are material statements of fact we require each company to provide evidence to substantiate the claim; or amend or remove statements.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_single_image image=”11497″ img_size=”64×64″][vc_column_text css=”.vc_custom_1637145681351{margin-top: -24px !important;}”]<\/p>\n

2. Due diligence<\/h4>\n

We conduct due diligence on the company, its legal structure and its directors before we close an investment. Our investment team performs a number of key checks and searches on every company that raises on the platform, using a combination of public registers, third-party sources and information requested directly from the company.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner gap=”25″ css=”.vc_custom_1637146522392{padding-top: 24px !important;padding-right: 24px !important;padding-bottom: 24px !important;padding-left: 24px !important;background-color: #ffffff !important;}”][vc_column_inner width=”1\/2″ css=”.vc_custom_1637145547940{background-color: #ffffff !important;}”][vc_single_image image=”11499″ img_size=”64×64″][vc_column_text css=”.vc_custom_1639666542242{margin-top: -24px !important;}”]<\/p>\n

3. Access<\/h4>\n

We provide investors with direct access to the companies and entrepreneurs raising on the platform. This provides investors with the opportunity to request further information that\u2019s important to them. Investors can ask questions, arrange to meet and more. We also don\u2019t allow pseudonyms so you know who you\u2019re dealing with.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_single_image image=”11502″ img_size=”64×64″][vc_column_text css=”.vc_custom_1637146264476{margin-top: -24px !important;}”]<\/p>\n

4. Contractual protections<\/h4>\n

We enter into a suite of professional contractual protections with each company that raises on Seedrs, including warranties that provide a level of legal protection against a business providing inaccurate information. We also generally ensure that the company\u2019s shareholder agreement contains pre-emption rights on the issue of new shares and investor consent rights over the creation of new classes of shares. For companies that already have shareholder agreements, we can usually joint the existing agreement as long as they have the core provisions we need to look after investor interests whilst balancing entrepreneur needs.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner gap=”25″ css=”.vc_custom_1637146522392{padding-top: 24px !important;padding-right: 24px !important;padding-bottom: 24px !important;padding-left: 24px !important;background-color: #ffffff !important;}”][vc_column_inner width=”1\/2″ css=”.vc_custom_1637145547940{background-color: #ffffff !important;}”][vc_single_image image=”11500″ img_size=”64×64″][vc_column_text css=”.vc_custom_1637146712064{margin-top: -24px !important;}”]<\/p>\n

5. Compliance<\/h4>\n

Our Financial Conduct Authority (FCA) permissions require us to protect investors in various ways, including:[\/vc_column_text][vc_column_text css=”.vc_custom_1637146804845{padding-left: 24px !important;}”]<\/p>\n