Due Diligence (DD)

Your business advantage
DD Process
Our due diligence team performs a thorough review on each company in order to instill investor confidence and help your company succeed.
We view our due diligence process as an advantage and an opportunity for your company to become investor ready.
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Document Collection

We collect materials that support your business aspirations and past performance.

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Analysis & Inquiry

We identify and discuss risk areas that would be of material interest to investors.

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IRC Review

Our investment review committee performs a final review on the company with the founder/CEO.

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Offering Documents

We work with you to ensure you have all offering documents and legal contracts.

Going Over 50 Shareholders
One of the misconceptions of raising money from more than 50 investors is that it is a big deal and hassle. But in reality, there isn’t much change. The only change is that companies with more than 50 shareholders have one page-filing requirement with provincial securities regulators called The Report of Exempt Distribution. At FrontFundr, we prepare this document and provide you with instructions on when the filing deadlines are and how to file it.
Going over 50 shareholder isn’t complicated and time-consuming, nor does it create additional compliance complexity. You can still raise from your family and friends, accredited investors, angels, VC’s, the crowd, and any other investor.
Riipen
Bridging the skills gap with experiential learning raised $126,528 from 39 investors.
Pique Fund
An impact investment fund raised $382,000 from 17 investors.
Quidni Estate Winery
Okanagan valley winery on the Naramata bench raised $100,000 from 12 investors.
Guusto Gifts
A mobile gifting app that raised $41,417 from 12 investors.
Voting Trust Agreement (VTA)
With our Voting Trust Agreement (VTA) we eliminate the hassle of managing a large number of shareholders and streamline your corporate governance. New investors agree to assign their voting rights to a trustee (the founder or CEO) who casts votes for them when required. To protect the trustee from a liability perspective, we structure the trust as a “Bare Trust” meaning that the discretion over the way the trustee votes is removed and specified in the VTA.
For your company, this has the effect of streamlining your corporate governance and providing more freedom to undertake the day-to-day demands of running a business. For any future investors, this eliminates their concerns with a large number of investors on your cap table. For investors, this relieves the stress of submitting their votes in a timely fashion but allows them to be owners and participate in the financial benefit of the company.
Investment Review Committee (IRC)
FrontFundr's IRC is comprised of an internal due diligence team, key management and outside investment professionals who review the business and determine if the company is ready for inclusion on the platform.
IRC approval meetings take one hour, during which management for the issuer is requested to take part to answer any questions from the committee and address any concerns they may have.
It is also a great opportunity for an issuer to communicate their business goals and relay their growth plan for the future – important skills to have when speaking with any investor.