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Fundraising Agreement

This template outlines the terms and conditions between a company seeking investment and an investor providing funds, detailing the equity stake, investment amount, and other pertinent clauses. Use it when formalising an equity investment round.

Updated 15d ago
equity fundinginvestment agreementfundraising agreementshareholder agreementSME financeSouthern Africa

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

DATE

{{date}}

PARTIES TO THE AGREEMENT

This Fundraising Agreement ("Agreement") is made and entered into on this {{date}} by and between:

**{{company_name}}** (Registration Number: {{company_registration_number}}), a company duly incorporated and registered under the laws of {{country}}, with its principal place of business at {{company_address}} (hereinafter referred to as "the Company" or "the Issuer"),

AND

**{{investor_name}}** (Identity/Registration Number: {{investor_id_number}}), residing at/with its principal place of business at {{investor_address}} (hereinafter referred to as "the Investor").

Collectively referred to as "the Parties".

BACKGROUND

A. The Company is engaged in the business of {{company_business_description}} and requires additional capital for {{reason_for_funding}}.

B. The Investor is desirous of investing in the Company by subscribing for shares on the terms and conditions set forth in this Agreement.

1. INVESTMENT AMOUNT AND EQUITY STAKE

1.1. The Investor agrees to invest the sum of {{investment_currency}} {{investment_amount}} ({{investment_amount_words}}) in the Company.

1.2. In consideration for the investment, the Company agrees to issue to the Investor {{number_of_shares}} ordinary shares, representing {{percentage_equity_stake}}% of the total issued share capital of the Company.

2. USE OF FUNDS

2.1. The Company undertakes to utilise the investment proceeds exclusively for the following purposes: {{detailed_use_of_funds}}.

2.2. Any material deviation from the agreed use of funds must be approved in writing by the Investor.

3. REPRESENTATIONS AND WARRANTIES

3.1. The Company represents and warrants that:

a. It is duly incorporated and validly existing under the laws of its jurisdiction.

b. It has all necessary corporate power and authority to enter into and perform its obligations under this Agreement.

c. The shares to be issued to the Investor will be free from all liens, charges, and encumbrances.

3.2. The Investor represents and warrants that:

a. It has the full power and authority to enter into and perform its obligations under this Agreement.

b. It is an experienced investor and understands the risks associated with this investment.

4. CONDITIONS PRECEDENT

4.1. This Agreement is conditional upon the fulfilment of the following conditions precedent within {{days_for_conditions_precedent}} days from the Effective Date:

a. Completion of satisfactory due diligence by the Investor.

b. Receipt of all necessary corporate and regulatory approvals.

c. Execution of a Shareholders' Agreement between the Parties (if applicable).

5. GOVERNING LAW AND DISPUTE RESOLUTION

5.1. This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_country}}.

5.2. Any dispute arising out of or in connection with this Agreement shall be referred to and finally resolved by arbitration administered by {{arbitration_body}} in accordance with its Arbitration Rules, for the time being in force, which rules are deemed to be incorporated by reference in this clause. The seat of the arbitration shall be {{arbitration_city}}, {{arbitration_country}}.

6. CONFIDENTIALITY

6.1. All information exchanged between the Parties in connection with this Agreement shall be kept strictly confidential, save for disclosures required by law or to professional advisors under an obligation of confidentiality.

7. ENTIRE AGREEMENT

7.1. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, between the Parties relating to the subject matter hereof.

8. SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.

For and on behalf of **{{company_name}}**:

___________________________

Name: {{company_representative_name}}

Title: {{company_representative_title}}

Date: {{signature_date}}

For and on behalf of **{{investor_name}}**:

___________________________

Name: {{investor_representative_name}}

Title: {{investor_representative_title}}

Date: {{signature_date}}

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