Collective Equity launches ‘equity pooling fund’
UK start-up and HLaw client, Collective Equity, has created the first equity pooling fund, which allows founders to pool up to 10 per cent of their shares with other founders without giving up voting or disrupting the cap-table. When any start-up exits, everyone in that pool gets a share of the proceeds, and Collective Equity takes a 15% cut.
This is Collective Equity’s first fund and consists of 11 Crowdcube-funded companies, 19 limited partners and £3.76m in equity contributions. And the HLaw Management Incentives team were delighted to be involved.
UK founders looking to take part in Collective Equity will need to have raised capital in the last six months and be backed by institutional or VC capital.
Deal/project: Equity pooling fund
Date closed: December 2022