Investment Agreement – Draft It Legal
Secure Your Capital. Protect Your Rights. Build on a Solid Legal Foundation.
Raising funds from investors is a crucial milestone — but without a properly structured Investment Agreement, it can lead to future disputes, unclear obligations, or investor-founder misalignment. At Draft It Legal, we help startups and investors draft clear, enforceable, and compliant Investment Agreements that ensure mutual protection and business clarity.
What is an Investment Agreement?
An Investment Agreement is a legal contract between a company and an investor that outlines the terms and conditions of the investment. It typically includes the amount of investment, type of securities issued (equity, CCPS, convertible notes, etc.), investor rights, board structure, exit provisions, and more.
🛡️ Why You Need an Investment Agreement
Clarify Ownership & Equity Terms
Define the percentage of ownership, type of shares issued, and post-funding cap table.
Protect Investor & Founder Interests
Outline rights, obligations, warranties, and representations.
Ensure Regulatory Compliance
Align with the Companies Act, FEMA, SEBI, and taxation norms.
Boost Investor Confidence
Show professionalism and reduce perceived risk with a strong agreement.
✍️ What We Cover in an Investment Agreement
Our legal experts create customized Investment Agreements tailored to your funding round and investor type:
🔹 Key Clauses Included:
- Amount of Investment & Valuation Terms
- Type of Security (Equity, CCPS, Convertible Notes)
- Pre-money/Post-money Valuation
- Board Composition & Voting Rights
- Reserved Matters & Veto Powers
- Anti-Dilution Protection
- Exit Rights (Buyback, IPO, Secondary Sale)
- Drag-Along / Tag-Along Rights
- Dividend Policies
- Use of Funds & Milestones
- Founders' Lock-in & Non-compete Clauses
🧠 We Support:
- Angel Investments
- Seed & Pre-Series A Rounds
- Venture Capital Deals
- SAFE Notes / Convertible Instruments
- Equity-based ESOP Structures
⚖️ Why Work with Draft It Legal?
Experienced Startup Lawyers
We understand the dynamics of fundraising and align with investor goals.
Legally Sound & Confidential
All agreements are vetted for enforceability and compliance.
Fast Turnaround
Get your agreement within 3–5 days, with consultation and 2 free revisions.
Global-Ready Agreements
Cross-border investment contracts compliant with FEMA & FDI rules.
📜 FAQs – Investment Agreements
- Is an Investment Agreement mandatory?
Not mandatory, but highly recommended to avoid disputes and protect all parties. - Can this be used with foreign investors?
Yes, we comply with FEMA, RBI, and offer international jurisdiction options. - Do I need a lawyer if I already have a term sheet?
Yes. The Investment Agreement gives legal force and includes protections. - What if I’m raising funds through a SAFE note?
We support and customize agreements for hybrid securities and deferred valuation. - Do investors get a board seat?
If agreed upon, board representation clauses can be included.
📞 Ready to Draft Your Investment Agreement?
📝 Draft It Legal – Empowering India’s Startup Ecosystem with Strong Legal Contracts.