The investor may have no connection to the company in which he invests two years before the date of his investment or three years after the date of his investment. In this context, the “link” is not defined, but it is assumed that anyone entitled to acquire more than 30% of the company`s share capital. What should a pre-food contract include? In addition, an early subscription contract for an investor may be preferable, as shares issued under an expanded underwriting contract are generally issued with a discount. However, unlike a convertible bond, the investor can continue to benefit from SEIS/EIS when issuing the shares, provided that the advanced underwriting contract is properly structured. Keywords: pre-subscription contract, SEIS/EIS compliance A solution to the problem was that investors entered into subscription agreements with an Advance Subscription Agreements to pay subscription funds to the company, with the shares issued later and an valuation to be determined at the time of the actual issuance of the shares. From the investor`s point of view, ASAs are slightly less advantageous than CLNs in the event of liquidation, as bondholders are higher than shareholders. In addition, unlike NLCs, no interest will be borne by the funds. In the past, HMRC has provided prior assurance for ASAs as qualification for EIS and SEIS reliefs, but did not have specific guidelines on the terms of these instruments. – does not allow the subscription to be refunded under any circumstances; – Can`t vary, cancel or assign; – Does not carry any interest; and – has a longstop date (no more than 6 months from the date of the agreement). SeedFAST investors generally receive a discount of 10-20%, so they receive shares in the next round at a lower odds than the investors in the cycle in order to compensate them for their investments in advance. Some of the issues that need to be considered by both startups and investors when negotiating an expanded subscription contract are: for ASA investors, funds advanced under an advanced underwriting agreement may benefit from tax relief as opposed to financing under an NLC.