Document background
The Convertible Agreement Regarding Equity (CARE) is primarily used in the Indonesian market for early-stage investments where immediate equity valuation may be challenging or premature. This document provides a structured way for companies to receive investment that can later convert into equity shares, typically at a future funding round or specific trigger event. It is particularly relevant in the Indonesian context where foreign investment restrictions and specific regulatory requirements must be carefully considered. The agreement includes essential provisions for investment terms, conversion mechanics, investor rights, and regulatory compliance specific to Indonesian law. It is commonly used by startups and growth companies seeking bridge financing or early-stage investment while deferring complex valuation discussions.
