SLIP - Startup's Lead Investment Paper

SLIP enables startups to raise capital at a stage when it is often difficult to value the company. With SLIP, you can raise capital while deferring the company valuation.

SLIP is a standardised agreement and a structured framework for the investment process, typically covering terms such as valuation, ownership stake and investor rights.

It is important to document the agreement thoroughly, and its accounting treatment must be determined in consultation with an auditor or accountant. For us to accept a SLIP, the company must recognise it as equity on its balance sheet.

Companies that receive funding from us may contribute equity in the form of SLIP, provided that

• the funding we provide is limited to NOK 5 million
• the company is less than five years old

We expect older companies to raise equity through a share issue or subordinated loan.

In connection with payment, SLIP must be documented by the applicant submitting

a) A signed SLIP that specifically ensures that

• the SLIP capital cannot be repaid to the investor in whole or in part, including in the event of a breach of the SLIP, and that
• The SLIP capital must be subordinated (i.e. rank behind all debt)

and

b) Audited annual accounts showing that the SLIP capital is recognised as equity on the borrower’s balance sheet, or confirmation from an auditor that the SLIP capital will be recognised as equity on the borrower’s balance sheet. (Alternatively, confirmation from an authorised accountant if the company is not subject to a statutory audit.)

Please note that if your company uses a standard agreement that does not adequately address the bullet points under section a), we will require declarations from the investors confirming these points. You may use our templates for these declarations:

• Declaration for loans
• Declaration for grants
• Declaration for loans (English)
• Declaration for grants (English)