Document background
The Startup Investment Agreement is a crucial document used when investors seek to provide capital funding to startup companies in the Philippines in exchange for equity ownership. This agreement must comply with Philippine corporate laws, particularly the Revised Corporation Code and the Securities Regulation Code, while also considering the Innovative Startup Act for potential benefits and incentives. The document typically outlines the complete investment structure, including valuation, share class rights, governance mechanisms, and investor protections. It's particularly important in the Philippine context where foreign ownership restrictions may apply to certain sectors, and specific regulatory requirements must be met for both local and international investments. The agreement serves as the foundational document for the investment relationship, establishing clear rights, obligations, and expectations for all parties involved.
