Pre-emption rights ensure existing Seedrs investors have the right and opportunity to maintain their percentage shareholding when your company goes on to issue further shares as part of a new round of funding. The pre-emption round will be a small private campaign, with limited information about the company and only open to those existing investors.
Seedrs will calculate each investor's pre-emption rights and inform them about the details of the round. Your investors will then have the opportunity to purchase additional shares through the Seedrs platform. This usually takes a few days to setup and once live will be open to investment for a minimum of 10 days. Here is how:
Step 1: Email our Portfolio Team and let them know about your new investment firstname.lastname@example.org
Step 2: Complete the Pre-emption Form: here
Step 3: Resubmit a campaign
Click "raise again" from "your campaigns", update any content and click “submit”. In most cases Seedrs will cut this down to the introduction, so this should be the only part you need to update.
Shortly after the campaign has gone live, Seedrs will send an email notification to all your investors with information about the round, along with their individual pre-emption rights and a link to the campaign.
Once you have closed the campaign, Seedrs will draft the documents, including a Subscription Agreement, Shareholders and Board Resolutions, Companies House forms, and Share Certificate, before signing and funds transfer.