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Investment Agreement For Small Business Template for Switzerland

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Key Requirements PROMPT example:

Investment Agreement For Small Business

"I need an Investment Agreement For Small Business under Swiss law for a CHF 500,000 investment in my tech startup, with standard minority investor protections and board observation rights, to be completed by March 2025."

Document background
The Investment Agreement For Small Business is a crucial legal document used when external investors seek to invest capital in a Swiss small business in exchange for equity or other securities. This agreement is particularly relevant in the Swiss market, where SMEs form the backbone of the economy and frequently seek growth capital. The document complies with Swiss federal laws, including the Code of Obligations and financial market regulations, while addressing key aspects such as investment terms, shareholder rights, corporate governance, and exit provisions. It provides a structured framework for investment transactions, protecting both the investor's interests and the company's operational flexibility. The agreement typically includes detailed provisions about share valuation, transfer restrictions, investor protections, and reporting requirements, all tailored to the Swiss legal context and small business environment.
Suggested Sections

1. Parties: Identification of the investing party(ies) and the target company, including their full legal names, registration numbers, and registered addresses

2. Background: Context of the investment, including brief description of the business and purpose of the investment

3. Definitions: Definitions of key terms used throughout the agreement

4. Investment Amount and Structure: Details of the investment amount, type of shares/securities being issued, and payment terms

5. Conditions Precedent: Conditions that must be met before the investment becomes effective

6. Completion: Process and requirements for completing the investment transaction

7. Warranties and Representations: Standard warranties from the company and existing shareholders regarding the business and its affairs

8. Investor Rights: Rights granted to the investor, including information rights and any board representation

9. Transfer Restrictions: Limitations on the transfer of shares and any pre-emptive rights

10. Confidentiality: Obligations regarding confidential information and public announcements

11. Costs and Taxes: Allocation of transaction costs and tax responsibilities

12. Notices: Process for formal communications between parties

13. Governing Law and Jurisdiction: Confirmation of Swiss law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate provisions including entire agreement, amendments, and severability

Optional Sections

1. Anti-dilution Protection: Protection for investors against future share issuances at lower valuations - include when requested by sophisticated investors

2. Tag-Along Rights: Right of investor to join in sale of shares by other shareholders - important for minority investor protection

3. Drag-Along Rights: Right to force other shareholders to join in sale of the company - include for majority investments

4. Veto Rights: Specific matters requiring investor approval - include for significant investments

5. Employee Share Option Pool: Provisions for employee share schemes - include if company plans to implement ESOP

6. Performance Targets: Specific business targets and consequences of meeting/missing them - include if investment is performance-linked

7. Put and Call Options: Rights to force sale or purchase of shares - include if agreed as part of exit strategy

8. Non-Competition and Non-Solicitation: Restrictions on competitive activities - include if required for business protection

Suggested Schedules

1. Schedule 1: Company Information: Detailed information about the company including corporate structure, share capital, and existing shareholders

2. Schedule 2: Warranties: Detailed list of warranties given by the company and existing shareholders

3. Schedule 3: Completion Requirements: Detailed list of documents and actions required for completion

4. Schedule 4: Business Plan: Company's business plan and financial projections

5. Schedule 5: Existing Shareholder Consent: Written consents from existing shareholders if required

6. Schedule 6: Board Resolutions: Required board resolutions approving the investment

7. Appendix A: Share Capital Table: Pre and post-investment share capital structure

8. Appendix B: Articles of Association: New or amended articles of association reflecting investment terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses







































Relevant Industries

Technology

Manufacturing

Professional Services

Retail

Healthcare

FinTech

Hospitality

E-commerce

Clean Technology

Biotechnology

Agriculture

Digital Media

Software Development

Consumer Goods

Education Services

Relevant Teams

Legal

Finance

Corporate Development

Compliance

Executive Leadership

Investment

Strategy

Corporate Governance

Risk Management

Business Development

Relevant Roles

CEO

CFO

Legal Counsel

Investment Manager

Business Development Director

Company Secretary

Financial Controller

Corporate Lawyer

Managing Director

Board Member

Investment Analyst

Compliance Officer

Strategy Director

Private Equity Manager

Venture Capital Associate

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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