Fund Subscription Agreement Template

A subscription contract contains the details of the purchase price for the sale of your company`s shares. It also includes the representation and guarantees that each party will make between them as part of the agreement. (Learn more about subscription agreements.) This agreement applies in the event that a company wishes to issue shares to a new investor. It defines the investment mechanisms and guarantees to be provided by the company. It is a simple subscription contract that is intended to be used when a company accepts the capital of friends and investors in family seeds. It provides for investments in common shares in an unconditional tranche. Download the subscription contract model There are no standard conditions for seed investor investments – these types of investments can often be relatively informal and do not include investor protection rules required by professional investors or formal investment groups such as angel groups. Under New Zealand Securities Act, an entity may not issue (or propose) shares, options or other securities without providing new shareholders with detailed disclosure information unless it is satisfied that an exclusion from the advertising obligations under the Financial Markets Conduct Act 2013 applies to that offer or issue. You will find an explanation of the relevant exclusions in our NZ Securities Act – a guide to fundraising for technology companies.