A Subscription Agreement, also referred to as share subscription agreement, is a legal contract between a company and an investor that outlines the terms for investment by purchasing shares or securities, protecting both parties' interests.
As an investor, a subscription agreement is one of the most important documents you'll encounter when investing into a startup. It sets out the investment structure, the amount of the investment, and any other details that both parties need to know. By receiving a share subscription agreement, investors can be confident that their investment is legally binding and enforceable.
As a startup founder, a subscription agreement is an essential tool for raising capital. Without a proper subscription agreement in place, you're leaving yourself and your investors vulnerable to disputes and misunderstandings. A subscription agreement template can help you avoid these issues by clearly outlining the terms and conditions of your capital raise.
A subscription agreement is crucial for any startup raising capital. Here are a few reasons why you need a subscription agreement template:
Free to use with Cake, a best-practice subscription agreement template is generated for you when you start a new raise in the app.
Reviewed by our legal partners, Cake's subscription agreement template includes the following components:
With Cake, you can customize our legal templates to your requirements or bring your own if you already have a subscription agreement on file. You may also download a PDF copy of the subscription agreement template from the platform.
When you send any agreements for signing, Cake does the time-consuming work of automating contract creation, notifying stakeholders to sign the documents as needed, and being a one-stop shop for all your equity management needs.
A share subscription agreement is used to outline the terms and conditions of an investment in a company through the purchase of its shares. It is a legally binding contract that ensures that both parties understand and agree to the terms of the investment.
A share subscription agreement is typically prepared by the company seeking to raise funds through equity financing, with the assistance of legal professionals.
The essential components of a share subscription agreement include the subscription terms, representations and warranties, conditions precedent, closing procedures, and any miscellaneous provisions.
A share subscription agreement outlines the terms and conditions of an investment in a company, while a shareholders agreement outlines the rights and obligations of the shareholders of a company.
Yes, a share subscription agreement is a legally binding contract between the company and the investor(s).
