Business law firm Endeavour Partnership has completed a landmark project for a Newton Aycliffe company which could revolutionise the way entrepreneurs and investors take advantage of alternative finance markets.
Stockton-based Endeavour has created a new legal framework for financial technology firm Growth Capital Ventures to give investors of all sizes uniform rights and protection, while also making it easier for entrepreneurs to tap into the opportunities of alternative finance.
Growth Capital Ventures, based at The HUB Workspace on Aycliffe Business Park, operates online peer-to-peer and equity crowdfunding platforms that link entrepreneurs and high growth businesses with a range of investor types including venture capitalists, experienced angel investors and smaller investors via its crowdfunding arm GrowthFunders.
With such a diverse mix of investors, driven in part by the rapid emergence of equity crowdfunding, the firm recognised the need to create a level playing field for investors of all size.
It enlisted Teesside-based Endeavour Partnership to develop a suite of standardised legal documents to facilitate co-investment and syndication between the various different types of investor using its platforms.
While striking a balance between investor and entrepreneur needs, the documents also had to adhere to guidelines set out by the Financial Conduct Authority, which directly authorises Growth Capital Ventures.
The documents are designed to give smaller investors the same grade protections as their larger, more experienced counterparts. As well as enabling smaller investors to contribute follow-on investment to growing businesses.
The documents also give smaller investors the right to be involved in shareholder votes, giving them a voice without holding the business back, should they not wish to be actively involved.
Growth Capital Ventures director Craig Peterson, pictured (above, centre) with Endeavour partner Nik Tunley (left), said: “It’s fantastic to have found a legal partner on our doorstep with the capacity and expertise to handle such a complex assignment.
“The firm’s commitment to developing relationships and its realistic cost structure are what really set it apart from the competition. Endeavour are a valued strategic partner and will provide legal support on all equity investments made through our GrowthFunders platform.”
Tunley added: “We have an experienced corporate and commercial team and it’s good to support an innovative ‘Fintech’ business like Growth Capital Ventures.
“We are looking forward to working together on some exciting deals as over the next few years.”