Capital raising agreement templateCapital Raising Agreement • August 23rd, 2023
Contract Type FiledAugust 23rd, 2023The agreement defines their respective rights and responsibilities, organises the management of the company and protects the interests of the minority shareholders (usually the investors). The issue of shares will be recorded into a Company Record of Shares Transfer.After a transfer of shares, would the rights and obligations of shareholders remain?An Adherence Clause adheres obligations provided in the agreement to future transferees under the Investment Agreement. That is why equity capital is generally considered to be more expensive than debt capital.For successful startups, there may be several rounds of findingsSeed — usually friends and family or angel investorsSeries A — usually Angel investors or Venture Capital fundsSeries B — usually Venture Capital funds or Private Equity investorsSeries C — usually Cornerstone investors or Private Equity investors looking to cash out on a future Initial Public Offering, IPOThese funding rounds allow investors with different investment appe