Rules and ethics
Part of UK compliance for women founder funding services, from financial promotions to equality duties
Women founder funding commercial contracts: a checklist
A practical checklist for women founder funding commercial contracts, covering adviser, broker, loan, equity, grant, cohort and data terms.
This checklist for women founder funding commercial contracts maps the agreements that may sit across a funding journey and the terms to review. Read each contract in full and map how fees, data and responsibility pass between them. It is an issue spotter, not legal advice.
What to take away
- Read each contract in full and map how fees, data and responsibility pass between all the agreements.
- A government guarantee to a lender does not automatically remove borrower liability, so model personal exposure carefully.
- Never assume a women-focused award relaxes financial or delivery controls, because eligibility and contract administration are separate.
- An introduction is not a funding commitment, so distinguish training, mentoring, cash and investment in cohort terms.
- A contract that remains only in the data room is easy to breach accidentally, so convert obligations into owners and dates.
1. Adviser engagement
Define the competition, finance route or readiness task; named staff; deliverables; timetable; founder inputs; revision limit; fee; tax; expenses; confidentiality; intellectual property; conflicts; termination; liability; complaint route; and work after submission.
Adviser engagement contract checks
- Define competition, finance route or readiness task
- Name staff, deliverables and timetable
- Set founder inputs and revision limit
- State fee, tax, expenses and confidentiality
- Cover IP, conflicts, termination and liability
- Define success fee trigger and calculation base
A success fee needs an exact trigger, fee amount (fixed sum or percentage) and calculation base. State whether it applies to money found without the adviser, follow-on rounds, rejected-and-resubmitted bids or gross funding before deductions.
2. Broker or introduction terms
Identify the provider panel, exclusions, commission, lead-sharing consent and the point at which an introduction earns a fee. Establish whether the intermediary advises, arranges or merely supplies information and whether that activity requires permission.
Broker introduction fee decision
Does the intermediary advise, arrange or supply information?
Check FCA permissions and panel exclusions
Confirm no fee until introduction earns it
Check the legal entity and relevant status through the FCA Register. The record is evidence of stated status and permissions, not an endorsement of the proposed transaction.
3. Loan agreement and guarantee
Review borrower, amount, net advance, interest, fees, term, payment dates, permitted use, representations, covenants, information duties, security, guarantee, default, enforcement and early settlement; record the actual figures offered rather than relying on marketing language. Identify any security, including a debenture, and any personal guarantee, and check whether the Consumer Credit Act 1974 applies to the borrower and purpose. If a lender says the facility is supported by the British Business Bank's Growth Guarantee Scheme, check which scheme terms apply and record the borrower's obligations from the facility documents; scheme support does not discharge borrower debt.
Where a founder signs personally, model household exposure and obtain independent advice. Do not let a company cash forecast obscure the individual's contract.
4. Equity subscription and shareholders' agreement
Check valuation, share class, fully diluted ownership, conditions, warranties, investor consents, information rights, board rights, transfer restrictions, leaver terms, future issues, drag, tag and dispute provisions. Model later dilution.
The promotion and arrangement path may involve regulated activity under the Financial Services and Markets Act 2000 (FSMA). The FCA's PERG 8 guidance is a starting point for the communication perimeter, not a substitute for transaction counsel.
5. Grant funding agreement
Capture funded activities, eligible expenditure, project dates, claims, evidence, contribution, procurement, subsidy-control terms, intellectual property, publicity, monitoring, audit, changes, suspension and recovery. Identify any subsidy-control conditions and whether the Subsidy Control Act 2022 is relevant to the award; the application and award documents may form part of one contractual record.
Examples to investigate include Innovate UK's Women in Innovation Awards; check the current call and award agreement for eligibility, claims and delivery conditions. The British Business Bank's Start Up Loans scheme is a separate government-backed personal loan programme, not a women-specific award, so check the lender documents and your personal repayment liability.
6. Accelerator or cohort agreement
Distinguish training, mentoring, introductions, cash, stipend, services and investment. Check attendance, publicity, recording, use of founder stories, sponsor access, confidentiality, equity, fees and withdrawal. An introduction is not a funding commitment.
7. Data-sharing and processor terms
Map application, demographic, monitoring and financial data. Use a data processing agreement where a processor handles personal data, and specify purposes, roles, instructions, security, subprocessors, international transfers, retention, deletion, rights assistance and incident notification under the UK GDPR and Data Protection Act 2018. The ICO's controller and processor guidance helps test the assigned roles.
Reconcile the stack
Put every entity, payment, promise, data flow and liability on one page. Look for conflicting confidentiality, publicity, ownership or retention clauses. Record which agreement prevails and obtain advice before signing.
Keep a negotiation record
List each requested change, business reason, counterparty response and final clause. Reconcile the agreed amendment with the signed documents rather than relying on email assurance. Give ownership, personal guarantees, broad warranties, publicity, data sharing and long-tail fees a named founder and adviser review.
Run the downside case against the contract. Ask what happens after a missed payment, delayed grant milestone, failed minimum equity raise, founder withdrawal or early programme exit. The answer may sit across definitions, schedules and incorporated policies.
After signature, convert obligations into owners and dates. Store notice details, reporting timetables, consents and renewal or termination windows. A contract that remains only in the data room is easy to breach accidentally.
Before you act
- Read every contract in full before signing.
- Check the legal entity and status on the FCA Register.
- Model household exposure if you sign personally.
- Model later dilution from future share issues.
- Record each requested change and counterparty response.
- Store notice details and reporting timetables after signature.
Common questions
What should a success fee clause specify?
It needs an exact trigger and calculation base. State whether it applies to money found without the adviser, follow-on rounds, rejected-and-resubmitted bids or gross funding before deductions. The article says to define these points rather than leave them open.
Why does a government guarantee not protect a founder?
A government guarantee to a lender does not automatically remove borrower liability. Where a founder signs personally, the article says to model household exposure and obtain independent advice, and not let a company cash forecast obscure the individual's contract.
What should be checked in an accelerator or cohort agreement?
Distinguish training, mentoring, introductions, cash, stipend, services and investment. Check attendance, publicity, recording, use of founder stories, sponsor access, confidentiality, equity, fees and withdrawal. The article notes that an introduction is not a funding commitment.
