Document background
The Convertible Agreement Regarding Equity (CARE) is a sophisticated financing instrument used in the Belgian market, particularly suitable for early-stage companies seeking growth capital. This document type provides a flexible funding mechanism that allows companies to receive immediate financing while deferring complex equity valuation discussions. The agreement is structured to comply with Belgian corporate law requirements and financial regulations, including the Belgian Companies and Associations Code and FSMA guidelines. It typically includes detailed provisions for conversion triggers, valuation mechanisms, and investor protections, making it particularly suitable for bridge financing rounds or when companies anticipate a larger equity financing in the near future. The document incorporates necessary safeguards for both investors and companies while maintaining compliance with Belgian and EU regulatory requirements.
