Upfront Closing Mechanics are a set of due diligence and compliance processes that must be completed before the initiation of a campaign’s first closing. Completion of Upfront Closing Mechanics, which includes the request of, receipt of, and review of materials, typically takes about a week. During Upfront Closing Mechanics, a standard closings checklist requesting information, acknowledgements, and consents is sent by SeedInvest to the company in order to:

1. Complete any pending confirmatory due diligence items

2. Ensure that board, custodians, transfer agents, etc. are ready for the proper issuance of the securities, and

3. Ensure the fundraising company is properly prepared to commence a closing.

The following may be requested of the company in Upfront Closing Mechanics:

  1. Latest capital table,

  2. Amended and reinstated COI (when applicable),

  3. Proof of funding for any off-platform investments in the same fundraising round,

  4. Acknowledgment of quarterly business updates,

  5. Acknowledgment of tax reporting requirements,

  6. Confirmation to sending investor perks (when applicable), and

  7. Proof of engagement with a transfer agent (when applicable).

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