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by Undo Capital
December 11, 2025
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What Is an Advance Subscription Agreement (ASA)?

An Advance Subscription Agreement (ASA) is a UK early-stage investment instrument that allows investors to provide funding upfront in exchange for the right to receive shares at a future funding round, usually at a discounted price.

Advance Subscription Agreement Meaning

The advance subscription agreement's meaning is rooted in flexibility and speed. Unlike a traditional equity round, an ASA defers valuation until a later priced round, making it faster to close while still rewarding early investors. A clear ASA definition includes a fixed long-stop date, a discount to the future share price and, in some cases, a valuation cap. The ASA stands for a founder-friendly way to raise capital without setting a valuation too early, while remaining compliant with SEIS/EIS requirements when structured correctly.

For more on ASAs and startup fundraising in the UK, visit Undo Capital.

Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.