Thank you for choosing Ventures Together (VT)! We’re excited to play a part in your journey and to support you along the way. We’re not a big cheque, but our aim is to be the best investor, per £/$/€, in your round.

This explainer outlines the purpose and benefits of the VT Agency Agreement. Our goal is to streamline admin for both founders and angels, while making sure everything is legally sound.

Why the VT Agency Agreement exists

The VT Agency Agreement allows investment funds from our angel members to flow through VT in a legally compliant and efficient manner. This helps reduce friction for both sides while staying aligned with FCA regulations.

Key Benefits for Founders:

• One cap table entry instead of 10–50+ individual angels
• One signature on documents instead of chasing multiple investors, not just now, but for all future events (slow investors can stall, or even critically endanger companies).
• One payment instead of tracking down many small transfers
• One correspondent so you can deal with just us, rather than lots of people asking you the same Qs

This structure is possible because the VT angels appoint a lead angel to act as share trustee, holding shares in trust on behalf of the group. This simplifies your cap table without affecting the rights or intentions of individual investors.

Why funds flow through VT

1. Fee collection: Angels often pay VT fees as part of their investment process.
2. Carry deductions: VT takes carry (our performance-based fee) before distributing returns to angel members.

Because of this setup, funds must legally pass through VT before reaching you.

Legal rationale you can share with your lawyers

Although boring… In order to ensure this is as smooth and easy for founders as possible, we have to comply with the Payment Services Regulations 2017, so VT needs your formal consent to act as your commercial agent. There’s no hidden agenda behind this. It simply ensures:

• Angels are treated as having paid the company directly when they send funds to VT (you and they get the benefits of a direct relationship).
• VT is not providing a regulated payment service, thanks to an exemption under Schedule 1, Part 2, Paragraph 2(b) of the regulations.
• The investment is legally binding at the moment funds are received by VT.

Here’s a summary from our legal counsel: