ClozeSure, a Property Tech business based in Jersey, came to Vestd to keep their upcoming investment round organised, and to help them to set up their company share scheme.
The company needed to easily manage large numbers of shareholders and securely store and share sensitive documents relating to their raise.
Alluding to their share scheme, Peter Thompson, ClozeSure’s founder and CEO said that, “my own motivation around wanting to launch this scheme is based on a very strong belief born out of personal experience, that for a business to thrive, it is important that people feel that they are a part of it.”
Peter sought a tax-efficient share scheme that would encourage team members to stick with ClozeSure for the long haul, and he also wanted to attract new blood.
Roadblocks
As a Jersey-registered business, some of the UK’s most popular share schemes (such as EMI) would not be available to ClozeSure, which meant that creative solutions would be needed to give the business everything on their wish list.
Solution
Vestd’s expert team created a growth share scheme that would satisfy all of ClozeSure’s requirements.
“This was a very neat solution to the hurdles we encountered. I have spent thirty years of my life in the wealth management and tax industry and I didn't know this growth share solution existed or the rules around it, but it's very attractive and from an employee’s point of view, they get a lot of benefits. And the tax efficiency is good for both the company and the staff. That's obviously key.”
The success of this is down to Vestd’s innovative structuring of the scheme. Also, the responsiveness of your team is instant!
“I think you guys have gone above and beyond what you needed to do.”
Impressed investors
And in relation to ClozeSure’s raise process, Peter said that, “what's incredibly useful to us now and, and very attractive and impressive to anyone who's given access - is Vestd’s data room facility".
"We've been able to store every relevant document about the business and make that available by invitation to any potential investors who are wanting to do that due diligence”.
“The fact that it's all there on our platform is very impressive. It shows our investors that we're organised and it gives a very good impression of us as a business. So that's fantastic. We use it a lot.”
In conclusion
ClozeSure’s Board are now confident about administering the businesses as they take on more staff and complete their raise.
“The fact that shareholders can see their shares, that they can project forward the value of their shares on whatever assumptions they choose, and that we can control processes… this is all going to be invaluable because in the past, this has never existed.”
I'd recommend every business have a share option scheme - I think it comes hand in hand with business success.