Document background
The Equity Share Agreement Startup is a fundamental document used when a Philippine startup company seeks to raise capital by issuing shares to new investors. This agreement is essential in the Philippine startup ecosystem, where companies must navigate both the Revised Corporation Code and the Innovative Startup Act while securing investment. The document typically comes into play during seed rounds, Series A, or subsequent funding rounds, providing a comprehensive framework for the investment relationship. It details the number and class of shares being issued, investment amount, shareholder rights, corporate governance provisions, and various protective clauses for both investors and founders. The agreement must comply with Philippine corporate laws, particularly regarding foreign ownership restrictions if applicable, and typically includes provisions for future funding rounds and exit scenarios. This document is crucial for startups as it not only facilitates the current investment but also sets the foundation for future corporate actions and investor relations.
