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TL;DR


1. EU-INC

1.1 EU-REGISTRY

1.2 EU-DASHBOARD

1.3 EU-FAST


2. EU-ESOP


3. Taxation


4. Employment


What we DONā€™T want!

FAQ & Glossary

Supporting Appendices

Authors & Acknowledgments

<aside> Corporate Principle - Pillar 1.3 EU-FAST


EU-FAST (European Union Fast Advanced Subscription Template)

Key Characteristics

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ā‰ļøĀ Why is the EU-FAST not a convertible loan note agreement?

The EU-FAST would be a new alternative investment instrument designed to combine the benefits of existing early-stage funding options subject to future EU regulations.

Convertible loan notes are commonly used in startup financing as they allow debt to convert into equity, offering speed and simplicity. However, in certain EU countries, convertible notes are heavily regulated, which can create barriers when converting debt to equity. Recognizing these challenges, the EU-FAST has been developed as a simplified subscription agreementā€”drawing inspiration from instruments like the BSA AIR, Advanced Subscription Agreement, or YC SAFE. Importantly, the EU-FAST differs in that it would accrue no interest and have no maturity date, making it a flexible, forward-looking tool while supporting a standardised, efficient approach to early-stage investment across Europe. That being said, there is nothing that should prevent EU-INC from accepting other investment instruments that are widely used across Europe provided they comply with the future EU regulations governing the affairs of such entities.

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šŸ’” Best practices of similar instruments globally:

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šŸ“ŒĀ Example

A German investor is interested in investing in your EU-Inc, which has a registered address in the Netherlands. You have agreed on a post-money valuation for the investment. Using the open-sourced EU-FAST available on the EU-Inc website, you would be able to download the template, update it with the relevant investor and company details, specify the post-money valuation, and sign the document electronically. The investor would then wire the funds directly to the company.

This arrangement constitutes a future or advanced subscription for shares, as the EU-FAST will only convert upon a Financing Round, Liquidity Event, or Dissolution Event (unless repayment under Dissolution Event is elected).

Note:

The EU-FAST aspires to be a practical, pan-European tool for early-stage investments. However, its implementation as a standardized tool will depend on its adoption and the ecosystem's willingness to collaborate.

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Next: 2. EU-ESOP

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