Extension application

[helpongo]

Hi All,

Can any one sort this out,
does home office require the letter from joint venture for extension application.
i was sponsored by Venture capital and they provided the letter on initial application.

iv. £50,000 awarded by a venture capital firm, a seed funding competition or a UK
government department or devolved government departments in Scotland, Wales
or Northern Ireland/intermediary public body
If you are claiming points for investing £50,000 awarded by a venture capital firm, seed
funding competition or UK government department or devolved government departments in
Scotland, Wales or Northern Ireland/intermediary public body, and have not been awarded
points in a previous application for having those funds available, you must provide a letter
as evidence of the source of those funds. This letter must contain all of the information set
out above- but it does not need to have been produced within the 3 months immediately
before the date of the application. However, if you are claiming points for money previously
invested by a venture capital firm, you must supply the additional evidence detailed in the
Additional evidence for venture capital funding section.

Thanks

[zimba]

The Appendix A of immigration rules talks about the points being awarded for availability of the funds:

(iv) If the applicant is claiming points for investing £50,000 from a Venture Capital firm, Seed Funding Competition or UK Government Department, and has not been awarded points in a previous application for having those funds available, he must provide a letter as specified in paragraph 41-SD(c)(iii) (except that the letter does not need to have been produced within the three months immediately before the date of the application) as evidence of the source of those funds, and additionally if the source of the funding was a venture capital firm, he must also provide the evidence as specified in 41-SD(d)(iii).

In my opinion this means you have been awarded the points initially as you showed the source of funds, however I say better to include all those evidence again to be on the safe side

[helpongo]

Hi All,

Thank you for your reply.

I agree with your reponse as it is better to be on safe side.

But a question arises,

Does home office require the funding documents and letters as a compulsory document for the extension application which was initially funded by venture capital?

I was granted a visa in 2015 and at that time there was no requirement of a detailed explanation from Venture capital funding. So how Venture capital will now issue the additional detailed evidence.

I switched the Tier 4 visa to Tier 1 entrepreneur. Business was set up after getting the visa and funds from Venture capital.

Thanks

[helpongo]

Additional evidence for venture capital funding
If the third party is a venture capital firm, you must also provide the following documentation:
(1) An original letter from a director, partner or fund manager of the venture capital firm, which
includes:
 A statement providing detailed information on the strategy, structure and financial
exposure of the fund,
 A statement detailing the rationale for the investment, providing specific information
about the circumstances which led to the investment decision,
 A statement confirming that the business/proposed business is a genuine and
credible proposition.
(2) A copy of the completed term sheet for the investment, signed by all parties to the
transaction, which must include details of the company valuation, company structure, founder
and investor rights, the structure of funding and the type of security being taken.
A term sheet is a document which outlines the key financial and other terms of a proposed
investment, and will usually contain certain conditions which need to be met before the
investment is completed.
(3) A breakdown of the technical, legal, commercial and financial due diligence conducted
by the venture capital firm in support of the investment.
Satisfactory completion of due diligence may include, but is not limited to:
 Conclusion of commercial, scientific and intellectual property due diligence,
 A review of current trading and forecasts,
 A review of existing and proposed management service contracts,
 A review of the company's financial history and current financial position,
 Either a full legal review or one targeted on specific areas and,
 If it is not already in place, obtaining key man insurance and satisfactory references
and checks on key employees.
(4) A letter from an accountant, validating the financial condition of the fund. The accountant
must have a valid licence to practise or hold a practising certificate, and must be a member of
Tier 1(Entrepreneur) Policy Guidance version 04/2017 - Page 39
one of the following:
 the Institute of Chartered Accountants in England and Wales,

[helpongo]

Dear zimba88

Could you please clarify it further.

Thanks

[marcnath]

Hi All,

Thank you for your reply.

I agree with your reponse as it is better to be on safe side.

But a question arises,

Does home office require the funding documents and letters as a compulsory document for the extension application which was initially funded by venture capital?

I was granted a visa in 2015 and at that time there was no requirement of a detailed explanation from Venture capital funding. So how Venture capital will now issue the additional detailed evidence.

I switched the Tier 4 visa to Tier 1 entrepreneur. Business was set up after getting the visa and funds from Venture capital.

Thanks

Was the money invested before you applied for the initial visa or after ? i.e did you get points for availability of funds or invested funds

If it was already invested, then it seems straight forward.

If it was only points given for money available then you do need to provide the additional evidence that you posted later.

Have you talked to the VC fund ? Any reason why they would not provide it ?

Of those documents (2) and (4) should be straightforward for the venture capital fund to provide.

(1) and (3) is a little more uncertain. It refers to documents that should have been produced at the time of the application. So, there may be an argument that the HO should accept a statement from the VC that it was not prepared at the time of application and it does not make sense to produce it now.

[helpongo]

Hi All,

I am thankful to everyone who provides the advice and shares their knowledge.

I was given the points on the availability of funds from venture capital.The fund availbilty letter was provided by venture capital on my initial application of entrepreneur visa.After getting the visa I received the fund from Venture capital.

After speaking with them, They said we sponsored the candidate after considering all the merits and already provided the letter to home office for the funds availability and the genuineness of the application.

Venture capital is willing to provide (2) and (4) provided I should provide them with the template which home office requires now.


It is not very easy to get hold of the Venture capital as they are extremely busy in their projects. So please advise me,

In my understanding it is compulsory for me to submit these additional documents?
Which template home office will accept?
Is it necessary all 1, 2, 3,4 should be submitted with the application.

Thanks

[marcnath]

Hi All,

After speaking with them, They said we sponsored the candidate after considering all the merits and already provided the letter to home office for the funds availability and the genuineness of the application.

Venture capital is willing to provide (2) and (4) provided I should provide them with the template which home office requires now.


It is not very easy to get hold of the Venture capital as they are extremely busy in their projects. So please advise me,

In my understanding it is compulsory for me to submit these additional documents?
Which template home office will accept?
Is it necessary all 1, 2, 3,4 should be submitted with the application.

Thanks

So that is as I expected.

The requirement is that all of them should be submitted but it is not specified what the content of those should be in exact detail.

It is unreasonable for a VC that did not do 1 and 3 to now try to create that and I hope HO will understand and appreciate it.

So, my suggestion would be that you get the VC to give you a letter for all 4, but for 1 and 3 just explain that they did the evaluation but did not keep formal records of it from the few years back and so cannot reproduce it now.

No guarantees it will be accepted, but I would think it will be.

[helpongo]

Hi All,

Thank you very much for clarifying the important points.
The members really provide the good advice.

Is it necessary that business should generate high turnover and good profits as VC keeps asking for high turnover.

Thanks

[marcnath]

Hi All,

Thank you very much for clarifying the important points.
The members really provide the good advice.

Is it necessary that business should generate high turnover and good profits as VC keeps asking for high turnover.

Thanks

It is the VC's job to keep asking for high turnover.

Nothing to do with immigration though.