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AbilityMap Case Study: Successfully raising capital with quality legal documents

November 4, 2021

Metis Law specializes in raising capital for tech startups, which is why we were so excited when AbilityMap reached out to us at the beginning of 2017 about raising funds from their network offriends and family. 

The Client: AbilityMap 

AbilityMap is a behavioural measurement and modelling platform that enables customers to drive productivity across their workforce. 

AbilityMap works by providing insights into how companies can improve the performance of their employees. They measure and analyse the capabilities of an individual in the workplace before determining how they can drive productivity. The business intelligence platform shows where and how to develop existing teams and when you've found the right talent. 

The Challenge 

"When it came to the capital raise, we went out forour first round to essentially our network and a couple of friends and family. It was our first raise, and it's easy to get lost in different components of capital raise that can occur."

 - Mike Erlin, Co-founder and CEO of AbilityMap 

AbilityMap had some severe legal matters to consider before getting off the ground. They needed documents that ensured they could take on new projects, access private funding, and work with team members locally and abroad - all the while protecting their IP.   

The Solution 

Mike was introduced to My-Linh and her team at Metis Law through a referral. 

"When we were looking at the council that we were considering, we first went out for references, and that's how we were introduced to Metis Law. We then were looking for a strong contract and intellectual property background and experience with companies that were either startup or high-growth organisations. Due to the nature of our business, the synergy and fit with My-Linh and her team were very important." 

Metis Law has experience raising capital from both private individuals, corporates as well as institutional investors. These investors have funded companies such as Neighbourlytics (global urbantech company), Verve Super (Australia’s first ethical superfund for women – ledby women), Psykinetic (inclusive empowering tech company), and Zambesi (education platform).  

Metis Law has supported these startups with legal documents tailored specifically to meet investor requirements and needs. 

The Process 

Metis Law supported AbilityMap by providing strategic advice on conducting the cap raise, project managing it from start to finish, and ensuring that they had a clear idea of its progress. They were able to do this thanks in part because of their online platform, which allowed them to see what kind of momentum was building around the company's latest round. 

Metis Law also took the time to ensure that AbilityMap could focus on meeting with and liaising with potential investors. Metis Law made sure all legal documentation was in order, providing advice for Term Sheets, Shareholders' Agreements, Subscription Agreements - ensuring a smooth process from start to finish. 

Finally, Metis Law supported AbilityMapby giving advice on all aspects of intellectual property law and ensuring the company had everything in order. They advised on what to do with cap table and conversion securities, and as well as how best to close a deal so there are no legal issues that could slow down funding. 

A successful first-round capital raise from private investors 

Metis Law helped AbilityMap to create excellent and flawless contract documents. This enabled Mike and his co-founder to raise their first round of funding from private investors successfully. 

Mike Erlin said one of the things he appreciated from Metis Law was that they made raising funds “simple and straightforward”  because they recognized that raising funds should not be complicated, especially for first-timers. 

"The quality of the documents and the process and how it was able to proceed quickly put us in a very professional, well-prepared light. That was critical and necessary.”    

Set up for future funding rounds 

Mike appreciated that Metis Law helped raise capital for AbilityMap’s first round and set a foundation for future rounds. This foundation ensures simplicity when raising capital for subsequent rounds while still maintaining fairness to the shareholders. 

“I'm a bit of a contract geek myself. I think a well-written agreement is a thing of beauty. The documents that they set up for us have absolutely stood the test of time over the last three years." 

If you want to set up a stable foundation for raising capital, hiring an experienced lawyer is essential. The lawyer will need to understand legal frameworks to prepare all the necessary documents successfully.   

Product improvements and securing partnerships with four of the world's top consulting companies 

AbilityMap has grown in the past three years through raising capital, product improvements, and getting partnerships from four of the world's top consulting companies. 

In Mike's words, "We have 30 active clients at the moment. We've had two major functional and algorithmic enhancements to the product based on the work that we've done. We also went from the small end of town to the global top end oftown in three years." 

Final Words from the Happy Client 

"Metis Law has IP knowledge. They know how to write killer contracts. I'm very happy about that. They're experienced with investment rounds of different types and levels. And they have access to the people with capital and invest in the different sizes of companies and markets. When it comes right down to it, I know that I can call My-Linh on any matter and that she will listen, prioritize, and provide a considered response. I'll get what I need when I need it, and that's the most important thing."

 - Mike Erlin, Co-founder and CEO ofAbilityMap.  

Raising capital? Chat to a savvy, experienced capital raising lawyer. Email us at metis_at_metislaw.com.au or buzz us on + 61 2 8880 9383.