Investment Agreement Template

Use this investment contract template for direct equity and cash investments in a privately held business, where capital is exchanged for shares.

• Adapted for companies that have a direct ownership structure and do not use convertible securities or debt financing.
• Best suited for early-stage or closely held businesses.
• Combines capital input terms, governance control, distribution rules, exit restrictions, and investor obligations into a single agreement.
• Gives full control over the company’s strategic decisions to its majority shareholders.
• Restricts investors from exercising influence except through their financial investments.

You can personalize your investment partnership agreement to reflect the details of the business structure and investment terms, and create a clear understanding of the financial situation.

This template is fully customizable and available for free in Word and PDF formats.

Who it’s for

The investment partnership agreement template is usually used by:

• Startups and entrepreneurs: to simplify fundraising, outline legal rights, and set up clear terms for putting money into a business.
• Founders and shareholders: to accept investment without involving investors in daily operational matters.
• Operating businesses: to systemize the process of acquiring funds, making sure that they have set the terms up to fit their specific business model.
• Investors: to clarify their rights, control, and exit strategies, guaranteeing their money is used as agreed.
• Community funds and non-profits: to structure funding that aims for social impact, protect assets, and outline the purpose of funds.

Whether you fit these categories or are starting a business, this investor agreement sample provides a practical framework to spell out the investment terms.

When to use this investment agreement template

An investor agreement is a must when you either seek to receive funding or consider investing yourself. Our template covers the common scenarios:

• Seed funding
• Angel investments
• Series A/B/C rounds
• Strategic partnerships
• Convertible instruments
• Businesses seeking family/small loans

Making any investment official is what prevents future disputes, whether it’s an angel investment or a convertible note, by outlining ownership, control, and financial terms.

What’s included in the template

A coherent investment contract template should cover:

• Funding specifications: explanation of the capital amount, form, and applicable terms.
• Ownership and shareholding: information about the allocation of equity and ownership proportions after the investment.
• Profit Distribution: conditions that determine how earnings and financial gains are divided among stakeholders.
• Governance and oversight: describes the management framework after funding, including investor privileges and obligations.
• Terms for further financing: clauses governing future investment rounds or additional capital injections.
• Divestment options: rules on how stakeholders may transfer or liquidate their interests, including repurchase terms and sale conditions.

How to use this investment agreement template

This free investment agreement sample serves as a reliable starting point for companies that want to clearly define investment terms without drafting a contract from scratch.

1. State names and contact information

Include the names and contact information. It is vital as these details ensure that an agreement is clear, legal, and easy to manage.

2. Add the investment amount you will receive

You must write the amount clearly so everyone agrees on how much money is involved and what it means for ownership and control.

3. Include management and distribution details

This clause defines who controls the company, who makes key decisions, and the standards for how the company must be managed. Ensure your distribution section clearly showcases the cash on hand needs of your business.

4. Define voting rights

State who can vote (shareholders, investors, founders) and how many votes each person gets. It will help to handle the decision approval process.

5. Add non-disclosure and non-competition clauses

These will help you to protect confidential information and prevent unfair competition within the industry. Yet, when you need to protect sensitive information before an investment deal is signed, consider signing a standalone Non-Disclosure Agreement.

6. Review the contract and sign

Once complete, both the investor and the company should sign the agreement and keep a copy afterward. It may be a good idea to have a lawyer review the contact before signing, especially where the law requires it.