Investment Contract for Switzerland

Investment Contract Template for Switzerland

A comprehensive legal agreement governed by Swiss law that establishes the terms and conditions for an investment transaction between investors and the investment target. The document incorporates Swiss financial regulations, including compliance with FinSA and FinIA requirements, and outlines the investment structure, rights, obligations, and protections for all parties involved. It includes detailed provisions for investment mechanics, governance rights, regulatory compliance, exit mechanisms, and dispute resolution under Swiss jurisdiction, while ensuring alignment with Swiss financial market regulations and investor protection requirements.

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What is a Investment Contract?

The Investment Contract serves as a fundamental legal framework for structuring and documenting investment transactions under Swiss law. This document is essential when investors are committing capital to a company, project, or venture in Switzerland, requiring compliance with Swiss financial regulations including FinSA (FIDLEG) and FinIA (FINIG). The Investment Contract details crucial elements such as investment amount, valuation, investor rights, governance provisions, and regulatory compliance requirements. It is particularly important for establishing clear terms and protecting both investor and investee interests while ensuring compliance with Swiss financial market regulations. The document is designed to accommodate various investment scenarios, from venture capital and private equity investments to strategic corporate investments, while maintaining alignment with Swiss legal requirements and market practices.

What sections should be included in a Investment Contract?

1. Parties: Identification of the investor(s) and investee(s), including full legal names and addresses

2. Background: Context of the investment, brief description of the investment target and purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Investment Amount and Terms: Detailed specification of the investment amount, valuation, and basic terms

5. Conditions Precedent: Conditions that must be satisfied before the investment is made

6. Completion Mechanics: Process and requirements for completing the investment transaction

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Investor Rights: Rights granted to the investor, including information and governance rights

9. Regulatory Compliance: Obligations regarding Swiss financial regulations and reporting requirements

10. Confidentiality: Provisions regarding confidential information and its protection

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Exit Provisions: Mechanisms and terms for investment exit

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

14. Miscellaneous: Standard boilerplate provisions including notices, amendments, and entire agreement

What sections are optional to include in a Investment Contract?

1. Tag-Along Rights: Include when protecting minority investors in case of sale by majority shareholders

2. Drag-Along Rights: Include when majority investors need the ability to force minority shareholders to join in a sale

3. Anti-Dilution Protection: Include when protecting investors from dilution in future funding rounds

4. Board Representation: Include when the investment includes right to board seats

5. Veto Rights: Include when investor requires specific veto rights over certain company decisions

6. Performance Targets: Include when investment is tied to specific performance or milestone achievements

7. Multiple Closing Provisions: Include when investment will be made in multiple tranches

8. Co-Investment Rights: Include when investors are granted rights to participate in future investment rounds

What schedules should be included in a Investment Contract?

1. Investment Details: Detailed breakdown of investment amount, valuation, and share/security specifics

2. Conditions Precedent Checklist: List of all conditions that must be met before investment completion

3. Warranties: Detailed warranties given by the investee

4. Existing Capitalization: Current ownership structure and capitalization of the investment target

5. Business Plan: Summary of the business plan and use of investment proceeds

6. Key Performance Indicators: Specific metrics and targets to be achieved

7. Required Regulatory Approvals: List of necessary regulatory approvals and their status

8. Form of Shareholders Agreement: If applicable, form of shareholders agreement to be entered into

9. Due Diligence Findings: Summary of key due diligence findings and any required actions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Technology

Healthcare

Real Estate

Manufacturing

Renewable Energy

Biotechnology

Infrastructure

Private Equity

Venture Capital

Telecommunications

Consumer Goods

Professional Services

Clean Technology

Digital Assets

Relevant Teams

Legal

Finance

Compliance

Investment

Risk Management

Corporate Governance

Regulatory Affairs

Due Diligence

Treasury

Corporate Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Investment Manager

Legal Counsel

Compliance Officer

Investment Director

Corporate Secretary

Board Member

Financial Controller

Risk Manager

Investment Analyst

Portfolio Manager

Managing Partner

Due Diligence Officer

Regulatory Affairs Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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