AngeBlog by Basil Peters

Investor Confirmations

Every investor should receive a confirmation of their investment promptly after contributing their capital. This e-mail should also welcome them as shareholders.

Investor's expectations on documentation vary considerably when dealing with early stage companies.
A well worded cover e-mail with the four documents below attached, will make almost every investor happy.

 
 

Documents

Example Files

PDF Examples

PDF Size

1 Subscription Agreement Subscription Agreement Company_Name_Sub_Agreement_Investor_Name_
20060602.pdf 		About 1 MB
2 Share Certificate Share Certificate Company_Name_Share Cert_2_Investor_Name_
5000_Class_A Common_20060602.pdf		 Under 800 kB
3 Share Register excerpt Share Register Excerpt Company_Name_Share_Register_Excerpt
Investor_Name_20060602.pdf 		10 kB
4 Receipt for Funds Receipt for Funds Company_Name_Receipt_for_Funds_
Investor_Name_20060602.pdf 		30 kB
      Total size of confirmation e-mail Under 2 MB

It is important to be precise in naming the PDF files, following the examples above. These PDF files will be part of your company's minute book. The filenames must be conform exactly to the format described above to be properly filed and presented in your minute book folder.

The Receipt for Funds is one document that could be omitted, but some investors will still request it. So it's probably better to take the extra 30 seconds to send it to every investor.

The Share Register excerpt is redundant information, but sending to every investor is a good check on the share register entries and to confirm the investors e-mail address.

The total size of the Investor Confirmation package is under 2 MBytes. This is important because some e-mail systems still have a maximum attachment size limit of 2 MBytes.

The signed subscription agreement was scanned in color at 300dpi with Adobe set to high quality. Scanning in black and white results in a file size that is about 20% smaller.