Investment Agreement Template for United States

An Investment Agreement spells out the terms and conditions when someone puts money into a business venture. It captures how much money is being invested, what the investor gets in return (like shares or ownership rights), and when they can expect returns on their investment.

Beyond the basic money details, these agreements protect both sides by setting clear rules about voting rights, management roles, and exit strategies. They're especially important for startups seeking venture capital and private companies raising funds, since U.S. securities laws require specific disclosures and investor protections. The agreement also typically includes provisions for financial reporting, confidentiality, and dispute resolution.

Use an Investment Agreement when raising capital from outside investors, especially for early-stage companies or significant business expansions. This becomes crucial when bringing in angel investors, venture capital firms, or private equity partners who need clear terms about their investment and rights.

These agreements prove essential during any major funding round, from seed investments to Series A and beyond. They protect both parties by documenting key details like valuation, ownership percentages, and investor privileges. Companies raising funds under SEC Regulation D particularly need these agreements to comply with federal securities laws and provide required investor disclosures.

• Simple Agreement For Future Equity: Popular with startups, this converts investment to equity at a future funding round
• Business Investment Contract: Standard form for direct cash investments in exchange for immediate equity
• Repurchase Agreement: Allows companies to buy back shares from investors under specific conditions
• Company Share Agreement: Details shareholder rights and obligations in private companies
• Investment Agreement Between Two Parties: Straightforward structure for one-to-one investment deals

• Investors: Individuals, venture capital firms, or private equity groups providing capital in exchange for equity or rights in the business
• Company Founders/Owners: Entrepreneurs or existing business owners seeking funding while maintaining control over operations
• Corporate Lawyers: Draft and review agreements to ensure SEC compliance and protect both parties' interests
• Investment Bankers: Often facilitate deals and help structure investment terms for larger transactions
• Board Members: Review and approve investment terms, especially when dealing with significant ownership changes
• Financial Advisors: Help evaluate investment terms and advise clients on deal structure

• Company Details: Gather legal business name, registration info, and current ownership structure
• Investment Terms: Define investment amount, valuation, equity percentage, and payment schedule
• Investor Information: Collect legal names, contact details, and accredited investor status verification
• Rights Package: Specify voting rights, board seats, anti-dilution protection, and exit provisions
• Financial Documents: Prepare current financials, projections, and existing debt obligations
• Compliance Check: Review SEC requirements for your specific offering type and investor class
• Documentation: Our platform generates custom Investment Agreements that include all required elements

• Party Details: Full legal names, addresses, and roles of all investors and company representatives
• Investment Terms: Precise amount, payment schedule, and form of investment (cash, assets, or services)
• Equity Details: Number of shares, class of stock, percentage ownership, and valuation metrics
• Rights & Privileges: Voting rights, board representation, information access, and pre-emptive rights
• Exit Provisions: Tag-along rights, drag-along rights, and share transfer restrictions
• Representations: Company disclosures and investor qualifications under SEC rules
• Dispute Resolution: Governing law, jurisdiction, and conflict resolution procedures
• Signatures: Execution blocks for all parties with dates and titles

An Investment Agreement differs significantly from an Investment Agreement Term Sheet, though they're often confused. While both deal with investment transactions, their purposes and legal weight vary considerably.

• Legal Binding: Investment Agreements are fully binding contracts that detail all terms and create enforceable obligations. Term Sheets are typically non-binding summaries of key deal points used during negotiations
• Level of Detail: Investment Agreements contain comprehensive legal provisions, warranties, and remedies. Term Sheets outline basic terms like valuation and investment amount without extensive legal language
• Timing: Term Sheets come first during deal discussions, while Investment Agreements represent the final, formal agreement after negotiations conclude
• Purpose: Investment Agreements protect both parties' rights and create legal obligations. Term Sheets facilitate preliminary discussions and serve as blueprints for the final agreement