EQUITY TOOLKIT
Capital raise contract templates
When you are raising capital, there are several important legal documents that you need. Here's a checklist:
Subscription agreement
A Subscription Agreement is a legal contract between a company and an investor that outlines the terms for investment by purchasing shares or securities, protecting both parties' interests.
SAFE note
A SAFE (Simple Agreement for Future Equity) is a flexible, founder-friendly way to grant an investor the right to acquire equity in a future financing round. This streamlining early-stage fundraising by simplifying terms and reducing legal complexities.
Convertible note
A convertible note agreement is a short-term debt instrument that allows investors to lend money to a company with the expectation of converting the loan into equity in a future financing round, providing startups with access to early-stage capital while minimizing ownership dilution for founders.
Shareholders Agreement
The Shareholders Agreement is a document that sets out the ongoing relationship between a company, and as the term implies, it shareholders. Generally, a Shareholder Agreement will sit alongside the company Constitution, and will often prevail where there are any inconsistency.
Term sheet
A non-binding document that outlines the key terms and conditions of a potential investment or financing agreement between a company seeking capital and the investors or lenders interested in providing the funds. It serves as a preliminary agreement or roadmap for the subsequent negotiations and the finalization of a more detailed legal agreement, such as a definitive investment agreement or loan agreement.
Vesting Agreement
A vesting agreement is a legal contract or arrangement that outlines the conditions under which an individual or entity gains ownership rights over certain assets, such as stocks, options, or retirement benefits, over a specific period of time.
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