Who is Legalist? Legalist is a multi-strategy asset management firm that specializes in credit investments. Its founders, Eva Shang and Christian Haigh, dropped out of Harvard in 2016 to take Legalist through Y Combinator’s S16 batch.
Where does the money come from?
Legalist is backed by over 800 investors, including university endowments, major US investment banks, insurance companies and family offices. Your funds will come from one or more Legalist investment vehicles.
How fast can you fund?
To expedite funding for startups with immediate cash needs, Legalist will disburse funds same-day for deals that are signed and underwritten before 2pm PT.
Are your rates negotiable?
No. Our rates are disclosed upfront in a one-time, non-negotiable offer. Our goal is to simplify the funding process in order to help more companies through these difficult times.
What are your rates?
We offer two products.
You can sell us your entire SVB balance for 70% - 85% of the account total (insured or uninsured).
Alternatively, we are offering a short-term loan of up to 40% of your total SVB balance. The cost is a one-time 25% fee for the first 6 months, and annual interest at the prime rate + 8% thereafter.
How do I pay you back?
In the proof of claim submitted to the FDIC, you will indicate wire details to a bank account controlled by Legalist. We will require proof of this submission before funding. You do not have to pay us back directly unless the FDIC sends the funds to an account not in our control.
For loans, after we’ve been repaid, we will direct payment of any remaining amount from the FDIC to an account you chose.
Are there any restrictions on what I can use the money for?
No.
What do you need from me so I can get a quote?
Please fill out the application form above. It will take you 3 minutes. You will need evidence of your remaining account balance at SVB.
How much funding do I qualify for? If you are selling your entire claim to us, you are eligible for up to 70% - 85% of the face value of your account balance at SVB. If you are looking for a loan facility, you are eligible for up to 40% of the face value of your account balance.
What does the application process look like?
You fill out the form above. It takes 3 minutes. Once we receive it, we shall send you a quote in a DocuSign. If you're happy with the quote, sign it. We will then provide instructions for how to ensure that payments made by the FDIC get sent to us. Once those are complete, we will wire funds to the account you indicated in the DocuSign.
How will the funds be delivered?
When you countersign the quote on DocuSign, you will provide details for a bank account that you want us to wire the funds to.
What happens if this never gets resolved?
We take on the risk of any impairment to your deposits, even if the FDIC ultimately pays less than the amount advanced.
What is the maximum you will fund?
Up to $100 million per company or 70% - 85% of your total SVB balance if you want to sell your entire account balance. Up to $50 million per company or 40% of your total SVB balance if you are looking for a short term loan.
