Seed and Pre-Seed Funding

Legal support to help you raise capital with confidence

Raising investment is a defining moment for any early-stage business. Whether you are validating an idea or preparing for growth, securing the right funding, and structuring it correctly, can shape your future success.

What is pre-seed and seed funding?

Pre-seed funding is typically the earliest stage of investment. It often comes from founders, friends, family or early supporters, and is used to turn a business idea into a viable product or proposition.

Seed funding is usually the first formal investment round. This is where businesses raise capital to build operations, develop products and begin generating revenue.

At both stages, funding is more than just capital, it’s about setting the right foundations for future growth, governance and investment.

Who invests at this stage?

Early-stage businesses typically raise capital from a mix of investors, including:

• Founders, friends and family
• Business angel investors (often investing for equity and board involvement)
• Venture capital funds specialising in early-stage investment
• Crowdfunding platforms such as Crowdcube or Seedrs.

Each type of investor brings different expectations, risks and opportunities; it’s important to balance these effectively.

How funding rounds work in practice

In most cases, funding is raised in exchange for equity in the business. Investors will assess:

• The strength of your business model
• Your leadership team
• Market opportunity and risk
• Financial projections and capital requirements.

Valuation is therefore a negotiation. It reflects what investors are willing to pay and the long-term commercial potential of your business.

Heads of Terms – Getting the deal right early

A well-drafted Heads of Terms is a critical first step in any funding round. It sets out the key commercial terms of the deal and provides a framework for negotiation.

Typically, this will cover:

• Investment amount and equity stake
• Conditions to investment (including due diligence)
• Warranties and protections
• Exclusivity periods.

Getting this document right early avoids misunderstandings and keeps your transaction moving forward efficiently.

How can we help you?

If you are preparing for a pre-seed or seed funding round, early legal advice can make a significant difference to your outcome.

Whether you need support with structuring your investment, negotiating with investors or preparing your business for funding, our team is here to help.

We take a practical, end-to-end approach to supporting your funding round. Our team works alongside founders, investors and advisers to deliver a smooth and structured process.

Strategic and legal advice

We advise on how funding impacts your business, from ownership and control to future investment rounds, so you can make informed decisions.

Structuring your investment

We help design the right structure for your business and investor mix, ensuring it supports growth while protecting your interests.

Drafting and negotiation

We prepare and negotiate all key documents, including:

• Heads of Terms
• Investment and subscription agreements
• Shareholders’ agreements
• Articles of association.

Preparing your business

We ensure your company is investor-ready by:

• Reviewing company records and compliance
• Preparing cap tables (pre- and post-investment)
• Addressing intellectual property ownership.

Supporting growth beyond funding

As a specialist workplace law firm, we also help you build a strong operational foundation, including:

• Employment contracts and incentives (such as EMI schemes)
• Immigration and workforce planning
• Data protection and GDPR compliance.

We also work closely with accountants and tax advisers to help you access schemes such as EIS, SEIS and R&D tax relief.