What all Documents & agreements are required for seed funding round

679 votes

Hi you can see on our web page -funding and founder page . We explain the process in details and also on startup documents section . You can google and see IPFORSTARTUP. Com . We happy to help you in your venture , we are only india fully startup base legal and business consulting firm having presence in Italy's, Uk and india . Thanks

Advocate Nischal Arvind Singh LawRato

686 votes

Before you even start discussing the mechanics and terms of any arrangement, you must enter into a detailed Non Disclosure Agreement with the Investor. This protects your startup from any unauthorized disclosure of sensitive information being shared with the Investor. Even if the deal does not go through, the NDA is an extremely important document.

The term sheet is also a vital document that reflects an understanding of some basic aspects of the proposed funding. It's importance lies in the fact that it captures the deal mechanics, logistics and commercial understanding of the parties so as to avoid any misconceptions in the future. It also acts as the base for the investment agreement.

The investment agreement is the definitive binding document that ultimately results in the funding coming into the startup and appropriate instruments being issued to the Investor. It captures in details the manner in which the funds would come in and other commercial and legal aspects. It's one of the most important document and requires extensive analysis in order to avoid any potential liabilities and litigation.

Any Investor receiving rights to the company through seed investments would also execute a shareholders agreement. This sets out the rights and liabilities of each party with respect to each other and third parties in their capacity as security holders of a company.

Ancillary documents such as requisite internal authorisations and approvals, secretarial documents, compliance/waiver certificates etc. Are also some documents that assist in plugging any potential loopholes that may be exploited by parties.

Advocate Aditya Singha LawRato

906 votes

Well it depends on the nature and mode of investment that is proposed. There is no exhaustive list that will suit every transaction. The documents set can be as little as just one or as numerous as 4-5 documents, not including the compliances under various legislation. You need to share details of the transaction for specific advice.

Advocate Joydeep Nath LawRato

550 votes

Agreements- 1. Is the founder also developer in case not then you need to create non diaxlosutlre and contract for services with your developer
2- agreements- between partners
3-other documents associates with incorporation and function of the company
4-clearances and certificates depending on area of functionings of ur startup

Between a founder & an investor-
1-MoU on terms of agreement
2-Changes in base MoA and AoA of compny
3-share allotment and rights related docs
For more assistante you will have to seek opinion with commitment
You can get back to me in case you need further assistante
We have the requisit team for such purpose

Advoacte Amit Kumar Singh LawRato