What Is An Investment Agreement?

An Investment Agreement is a contract that can be used to protect someone who enters into a business relationship involving shares. Generally speaking, an investment agreement will establish the rights and responsibilities between two parties to an investment.

More specifically, an investment agreement will typically establish a business relationship between the entrepreneur or investor, who agrees to invest money in the other party’s business, with an expectation of receiving a return on that investment at a later point in time.

Investment Agreement Template Key Terms   

      • An adherence clause which will serve to obligate any later transferee of the stock to be subject to the investment agreement
      • The relevant parties to the investment agreement
      • A clear stipulation of payment terms and payment tranches if the investor is unable to make the entire investment in the company at one single time. The tranches will typically be tied in with revenue targets, product development, and other measurements.
      • Investor’s rights under the agreement:
            1. Amendments to bylaws
            2. Voting rights
            3. Electing directors
            4. Major capital expenditures
      • Confidentiality  – a common feature in investment agreement sample with private companies to keep the nature of the deal confidential. Investment agreement template free.




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