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Advanced Subscription Agreement (ASA)




An Advanced Subscription Agreement (ASA), similar to Simple Agreement for Future Equity (SAFE) is a financial instrument used to raise capital for early-stage startups and companies. It is a form of fundraising that allows businesses to secure investment from investors without setting an exact valuation for the company at the time of investment. Widely utilised in the UK and Europe, it seamlessly aligns with diverse tax relief schemes such as SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme).

The main features of an ASA include:

  1. Future Equity: Investors contribute funds that convert into company ownership during a future financing round.
  2. No Fixed Valuation: The company's exact valuation is not determined at the time of investment.
  3. Valuation Cap and Discount: ASA may have a cap on the maximum conversion price and offer a discount to incentivize early investors.
  4. Simplified and Cost-Efficient: ASA is a straightforward and cost-effective fundraising method for early-stage startups.

For example, a tech company seeks to raise funds to expand its product line. They offer ASAs to a group of investors. An early-stage investor decides to invest $10,000 through an ASA. When the startup secures a future funding round, the investors initial investment converts into equity, giving them a stake in the company's success.

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SeedBlink S.A. is registered in the Register of the Romanian Financial Supervisory Authority (ASF), under number PJR28FSFPR/400001, as of 03.11.2022 with an EU passport as per European Securities and Market Authority (ESMA) register of crowdfunding services providers.

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Investing in start-ups involves risks, including loss of capital, illiquidity, dilution, lack of dividends. It is suitable only for investors capable of evaluating and bearing those risks. In any event, it should be done only as part of a diversified portfolio (meaning a portfolio in which investment in start-ups represents only a fraction of the total investments or assets). Before investing please read the risk warnings available at https://seedblink.com/generalterms as well as the risks related provisions of the investment facilitation agreement that will be provided to you for the relevant round. SeedBlink is not responsible for any information provided by the start-ups, even if distributed through or by SeedBlink. SeedBlink does not endorse any start-up for investment nor does it advise you on the merits of your investment. Seedblink does not provide to you any other advisory services. The decision to invest is yours only. If you require help in evaluating a decision to invest, you should consult a professional adviser. The messages and documentation you receive from SeedBlink or the start-ups have been neither verified nor approved by the Romanian or the European authorities. Nothing in this message shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful.