The nightmare of a capital increase: Closing as a bottomless barrel!
Introduction
The completion of a capital increase (closing) is about more than just figures and contracts: A single data chaos can quickly cost start-ups dearly. Incorrect or incomplete data not only leads to immense additional costs, but also to delays and a loss of confidence among investors. In this article, we show how such errors occur, what consequences they have - and how Konsento helps to make the closing process smooth and cost-efficient.
Table of contents
- Why is data quality crucial for closing?
- The most common sources of error during closing
- How Konsento is revolutionising the closing process
Why is data quality crucial for closing?
Correct and complete data is the basis for every successful closing process. Incorrect data, on the other hand, leads to
- Legal risks: Invalid contracts and resolutions jeopardise the entire financing.
- Loss of time: time-consuming reworking and queries unnecessarily prolong the process.
- High costs: Reworking by lawyers or notaries drives up costs.
- Process chaos: Unclear data formats and different versions of documents lead to misunderstandings.
- Loss of trust: Investors expect professionalism - sloppy documents damage the reputation of the startup.
The most common sources of error during closing
1. unclear investor structure
Many start-ups do not know whether the investment is being made via a natural or legal person. Incorrect information about the investor or insufficient signatory authorisation invalidates subscription forms and clearing declarations and they have to be obtained again.
2. missing or incorrect data
Common problems are:
- Incomplete addresses or nicknames instead of the full official name, especially in the case of legal entities and partnerships.
- Unclear or inadmissible signature authorisations for legal entities.
- Different currency formats or exotic date formats in tables that have to be reformatted for transfer to the documents of a capital increase.
3. chaos in keeping a spreadsheet
Data in multiple versions of the cap table or the list of wall loans leads to confusion: Which table is up-to-date? Uncoordinated processing by several team members increases the likelihood of errors.
4. incorrect calculations and rounding errors
Whether interest on convertible loans, discounts or issue prices of shares - even small rounding errors can have serious consequences for the total amount raised in a financing round or the number of new shares to be created. The commercial register rejects registrations if CHF 0.03 too little or too much is shown for a financing round of CHF 600,000.00 due to rounding errors!
5. missing or incorrect documents
Incomplete minutes of resolutions, formal errors in supporting documents or missing second signatures result in expensive rework.
How Konsento is revolutionising the closing process
Guided processes and automation
Konsento offers clearly structured workflows that ensure that no step is forgotten.
Standardised data quality
An investor portal enables the centralised recording of all relevant information: complete, correct and uniformly formatted.
Efficient document creation
Konsento generates all the necessary resolutions and documents at the touch of a button - error-free and ready for immediate use.
Saves time and money
Startups not only save money, but also valuable time. The entire process is optimised, from data collection to the creation of the final documents.
Conclusion
Closing errors are expensive and time-consuming, but avoidable - provided you use the right tools right from the start. Konsento offers start-ups the perfect solution to avoid data chaos, optimise processes and present a professional image. However, the full potential in terms of time and cost savings can only be fully utilised if the financing round is set up correctly from the outset, all decisions are formally correct and all data has been collected correctly and completely. Therefore, get in touch with us as early as possible - ideally before you speak to the first investor.
👉 Use Konsento and prepare your capital increase with us - securely, efficiently and stress-free. Get in touch with us now for a free and non-binding initial consultation.
Sign up for our newsletterto stay up to date with company management.
Or follow us on social media: