An underwriter is an individual whose responsibility it is to assess, evaluate and build the risk profile of companies during the underwriting process.
Underwriting refers to the process of evaluating the risk profile of a company based on its fundamentals. The result is oftentimes an offer to provide funding to said organization under certain payback conditions. Startups typically undergo underwriting when they are raising debt capital.
Underwriting fees are charges provided by a financier to a company for underwriting their business—they can range anywhere from a few hundred, to a few thousand dollars.
Use of Proceeds Document
The use of proceeds document outlines the plan in which a company intends to acquire and deploy new capital injections. Typically it is broken out by functional area/purpose, which is accompanied by a %: e.g. spend 20% of capital to increase headcount by XX, deploy 50% of capital to develop YY product, utilize 30% of capital to launch ZZ marketing campaign.