ASA (Advance Subscription Agreement)
An agreement where investors pay now for shares to be issued at a future round, compatible with SEIS/EIS.
An ASA lets a company take investment immediately while deferring the share issue to the next priced round, usually with a discount and a longstop date. Unlike convertible debt, a properly structured ASA can qualify for SEIS/EIS relief, making it popular for fast UK pre-seed rounds. It is non-refundable and must convert to equity (it cannot be repaid as cash).
Examples
A founder raises £80k via an ASA with a 15% discount ahead of a seed round. — Three angels subscribe in advance under an SEIS-compatible ASA.
How it relates to The Startup Foundry
The Foundry helps pre-seed founders use SEIS/EIS-friendly instruments like ASAs so they’re attractive to the tax-incentivised angels in its network.