Investors Agreement

Legally Mapping The Allocation of Raised Finances

Investing rafiki


An investors agreement is the legal document of assignemtn that is used to assist in articulating the terms of an investment. The agreement relates to the details of how the parties will decide the proportion of funds invested will be allocated.

It regulates the operations between the existing shareholders of the company and the new shareholder. It becomes a term sheet that outlines the conditions between the company and the investors.

Importance of Investors Agreement

Safegaurding Investors Best Interests

Investors Agreement IMAGES 01

Allocation of Funds

Outlining the utilisation and purposes of the allocation of the invested funds. The fundraisers agreement clearly defines how the funds will be utilised.

Investors Agreement IMAGES 02

Background check

Before entering int an agreement with a partner there needs to be carried out approporiate background checks to ensure a confidence in building relationships.

Investors Agreement IMAGES 03

Protecting both parties

Monitoring if the benefitted company is keeping to the agreement relating to the contract that has been outlined.

Components of an Investors Agreement

Getting an investor for companies can be a great contributing factor for entrepreneurs. In order to maintan the investor relationship, an investor agreemtn needs to be carefully drafted. Ususally the investors agreement contains the following terms.

Terms of investments
Risk management
Terms of ROI
Rights of the investor
Purpose of investment

Value Proposition

Due Diligence

Carrying a carefully orchestrated background check on the investors.

Drafting the Agreement

Ensuring every necessary aspect is included in the agreement to safegaurd both part interests.

Knowledge Desk

There is a lot going around

Stay updated with our photon speed happenings, awards and news

20230908 172549 0000BlogOur Latest Blogs and News | Photon LegalPatent
September 6, 2023

Is Patent filing even a thing in India?

Is Patent filing even a thing in India? - Over the years, India has undergone a significant transformation in its approach to intellectual property protection. The country has aligned itself…
Top 5 Investments in IP Photon LegalOur Latest Blogs and News | Photon LegalBlogNews & Events
August 8, 2022


When it comes to investing in intellectual property, there are a lot of options to choose from. But what are the top 5 investments in IP? Photon Legal has the…
1694709563754Webinars | Photon Legal
September 26, 2023

How to make India a First World Nation

India, a country rich in culture, diversity, and potential, has long been on the path to progress. However, becoming a First World Nation requires focused efforts, innovative ideas, and collective…

Gain a fresh perspective on your intellectual property portfolio.