Document background
The Startup Investment Agreement is a crucial document used in Indonesia's growing startup ecosystem to formalize investment relationships between startups and their investors. This agreement becomes necessary when a startup is seeking external investment, whether from venture capital firms, angel investors, or strategic corporate investors. It encompasses key aspects such as investment terms, valuation, share issuance, investor protections, and governance rights, all while ensuring compliance with Indonesian regulations including the Investment Law and Company Law. The document must navigate specific local requirements such as language provisions, foreign ownership restrictions, and mandatory corporate governance structures. Given Indonesia's position as Southeast Asia's largest digital economy, this agreement often needs to accommodate both domestic and international investment considerations while protecting all parties' interests.
