Securing investors is often a critical component to starting or growing a business. In order to maintain and protect your important relationship with your investors, an investor agreement should be carefully drafted and include several key terms. The investor agreement can bring peace of mind to an investor that his or her investment interests are being protected and to the company that the investor funds will be seamlessly transferred and founder interests have been preserved.
What to Include in an Investor Agreement
An investor agreement is a contract that outlines the terms of an investment. The agreement should, of course, include the very basics, such as:
- The names and addresses of the parties
- The purpose of the investment
- The date of the investment
- The structure of the investment
- The signatures of the parties
The terms of the investment should be clearly laid out in the agreement.
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