What to keep in mind
Coordinate capital decisions, payment schedule, information rights, reserved matters, warranties, remedies and closing documents.
Inconsistent investment terms and corporate resolutions can jeopardize the agreed equity structure.
Distinctions often confused
A subscription brings capital into the company; purchasing existing shares pays the seller.
Frequently asked questions
Can investors receive special rights?
Potentially, within legal and bylaw limits.
Should investment money be paid before corporate approvals?
Timing and security should be expressly addressed in the documents.
Informational content. It is not a substitute for professional advice.