Investment Agreement Template
Also searched as: Term Sheet Template · SAFE Agreement Template · Convertible Note Template
An investment agreement sets the terms on which an investor puts capital into a company — valuation, ownership percentage, protective rights, and what happens on conversion or exit. The structure differs significantly between a priced equity round, a SAFE, and a convertible note.
A downloadable template is written for a hypothetical deal, and usually protects whoever wrote it. The clause structure below is genuinely universal — but the terms that matter (what’s excluded, who owns what, what the cap is) depend entirely on your situation. This page gives you the structure and the decisions; the guided draft turns your answers into a document built for your deal.
What a investment agreement must contain
These are the sections our lawyers review on every investment agreement. A document missing any of them has a gap worth closing before signature.
Investment agreements vary widely by instrument — priced equity round, SAFE, or convertible note — and by jurisdiction of incorporation. This guide reflects the clause structure our lawyers review on every investment agreement; the specific terms for your round are settled during drafting, not fixed in advance.
Decisions you need to make first
- 1What instrument — priced equity, SAFE, or convertible note?
Each converts ownership differently and carries different investor protections; the choice affects valuation mechanics and what rights investors hold before conversion.
- 2What is the liquidation preference, and is it participating?
A 1x non-participating preference is founder-friendly; a participating preference with a multiplier can significantly change founder proceeds in a modest exit.
- 3What anti-dilution protection applies?
This determines how much investor ownership is protected — and how much additional founder dilution occurs — if a future round prices lower.
- 4What board rights and protective provisions does the investor receive?
Board seats and veto rights over specific company decisions can materially constrain founder control going forward.
- 5Is founder equity subject to vesting or lock-in as a condition of the round?
Investors frequently require founder re-vesting as a condition of investment — a term worth understanding before it’s presented as non-negotiable.
Mistakes we see most often
- Signing a term sheet before understanding what liquidation preference and participation actually mean for an exit
- Not modelling how the anti-dilution mechanism plays out in a future down round
- Accepting board composition terms that give an early investor outsized long-term control
- Founder vesting reset agreed to without understanding the cliff and schedule implications
- Conversion mechanics for a SAFE or note not modelled against a range of future round valuations
Clauses worth understanding first
Build it around your deal, not someone else’s.
Answer a short set of questions and get a document written for your terms — then have a lawyer review it before you sign.
Lawyer-drafted, plan or one-off from ₹4,999 · 24–48 hour turnaround
Other contract guides
This guide is general information about contract structure, not legal advice. What your agreement should say depends on your specific circumstances and the law that governs it.
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