Hi, I'm currently fundraising in the UK for a feature film and may have found an investor, however I'm not sure how to proceed.
In the UK a film can be a start up company and fund raise by selling shares in that company where the investors get huge tax discounts, however it is conditional based on terms that must be met.
An investor has offered all the money and wants to be sole investor which doesn't qualify him for tax benefits via SEIS and EIS because no one investor can own more than 30 percent of the company. And also if he pays for all the shares in the company then he would own 100 percent of the company so what does that leave my production company?
So It's thrown me a bit, not sure if we should sell shares in the company or just draw up an investor contract for a percentage. Does anyone have any advise? Thanks.
In the UK a film can be a start up company and fund raise by selling shares in that company where the investors get huge tax discounts, however it is conditional based on terms that must be met.
An investor has offered all the money and wants to be sole investor which doesn't qualify him for tax benefits via SEIS and EIS because no one investor can own more than 30 percent of the company. And also if he pays for all the shares in the company then he would own 100 percent of the company so what does that leave my production company?
So It's thrown me a bit, not sure if we should sell shares in the company or just draw up an investor contract for a percentage. Does anyone have any advise? Thanks.