Subscription agreement template

Create a share subscription agreement, lawyer-approved and free for use in Cake
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What is a subscription agreement

A Subscription Agreement, also referred to as share 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.

As an investor, a subscription agreement is one of the most important documents you'll encounter when investing into a startup. It sets out the investment structure, the amount of the investment, and any other details that both parties need to know. By receiving a share subscription agreement, investors can be confident that their investment is legally binding and enforceable.

As a startup founder, a subscription agreement is an essential tool for raising capital. Without a proper subscription agreement in place, you're leaving yourself and your investors vulnerable to disputes and misunderstandings. A subscription agreement template can help you avoid these issues by clearly outlining the terms and conditions of your capital raise.

Importance of a share subscription agreement in raising capital

A subscription agreement is crucial for any startup raising capital. Here are a few reasons why you need a subscription agreement template:

  • Boosts investors' trust and confidence. A well-drafted share subscription agreement can help to attract potential investors by demonstrating that the company is professional, organized, and takes its legal obligations seriously.
  • Clarifies the terms and conditions. Like any legal document, the subscription agreement template clarifies the terms and conditions between two parties, which helps to avoid disputes and misunderstandings. Both parties know exactly what they're agreeing to and what they can expect from the investment.
  • Protects your startup and investors. A subscription agreement template protects your startup and investors by outlining your rights and obligations as the issuer. It also sets out the consequences of any breach of the agreement by either party.
  • Ensures compliance with securities laws. A subscription agreement template helps to ensure compliance with securities laws. The template sets out the requirements for the issuer to comply with applicable securities laws and regulations.

Subscription agreement template

Free to use with Cake, a best-practice subscription agreement template is generated for you when you start a new raise in the app.

Reviewed by our legal partners, Cake's subscription agreement template includes the following components:

  • Company details
  • Investor details
  • Local laws and definitions
  • Subscription terms
  • Share registration
  • Warranties
  • Payment details
  • Digital signing

With Cake, you can customize our legal templates to your requirements or bring your own if you already have a subscription agreement on file. You may also download a PDF copy of the subscription agreement template from the platform.

When you send any agreements for signing, Cake does the time-consuming work of automating contract creation, notifying stakeholders to sign the documents as needed, and being a one-stop shop for all your equity management needs.

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FAQs on share subscription agreements

1. What is the purpose of a share subscription agreement?

A share subscription agreement is used to outline the terms and conditions of an investment in a company through the purchase of its shares. It is a legally binding contract that ensures that both parties understand and agree to the terms of the investment.

2. Who prepares a share subscription agreement?

A share subscription agreement is typically prepared by the company seeking to raise funds through equity financing, with the assistance of legal professionals.

3. What are the essential components of a share subscription agreement?

The essential components of a share subscription agreement include the subscription terms, representations and warranties, conditions precedent, closing procedures, and any miscellaneous provisions.

4. What is the difference between a share subscription agreement and a shareholders agreement?

A share subscription agreement outlines the terms and conditions of an investment in a company, while a shareholders agreement outlines the rights and obligations of the shareholders of a company.

5. Is a share subscription agreement legally binding?

Yes, a share subscription agreement is a legally binding contract between the company and the investor(s).

How it works


Select the template

Choose from Cake's collection of legal templates

Fill out the details

The subscription agreement will be populated with details from your capital raise

Send for digital signing

Notify stakeholders, manage signed contracts all in one place

Download PDF

Download a sample template or a PDF copy if needed.
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