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A Seed investment agreement sets out the key terms when early-stage investors put money into a startup company in exchange for shares. It's typically the first formal investment round after friends and family funding, with investors usually getting preferred shares and key protections for their capital.

Under English law, these agreements include essential provisions about share rights, investor protections, and founders' commitments. They often feature anti-dilution clauses, pre-emption rights, and information rights - giving investors visibility on company performance while protecting founders' ability to run their business. The agreement forms part of a wider suite of documents including new Articles of Association and shareholder agreements.

Use a Seed investment agreement when your startup needs its first significant external funding beyond friends and family money. This typically happens when you're ready to scale but need capital for hiring, product development, or market expansion - usually seeking between £150,000 and £2 million from angel investors or early-stage venture capital firms.

The agreement becomes essential once you've found investors and agreed on basic terms like valuation and investment amount. It protects both sides by clearly defining share rights, board seats, investor protections, and future funding provisions. Getting this document right sets the foundation for future investment rounds and helps avoid disputes about control and decision-making.

• Simple seed agreements: Basic versions used for straightforward investments, typically with one or two angel investors and standard share rights
• Advanced seed agreements: More complex versions featuring detailed anti-dilution provisions, multiple investor classes, and sophisticated vesting schedules
• Convertible note agreements: Alternative structures where investment starts as debt and converts to equity at the next funding round
• SEIS/EIS-compliant agreements: Specially structured to qualify for UK tax relief schemes, with mandatory provisions to maintain tax eligibility
• Accelerator-style agreements: Standardized versions used by startup accelerators, often with predefined terms and investment amounts

• Startup founders: Key decision-makers who negotiate terms and sign the Seed investment agreement on behalf of their company, often accepting restrictions on their control
• Angel investors: High-net-worth individuals providing early-stage capital, typically seeking preferred shares and protective provisions
• Corporate lawyers: Draft and review agreements to protect both parties' interests and ensure compliance with UK company law
• Venture capital firms: Early-stage funds that often lead seed rounds, setting investment terms and governance requirements
• Company directors: Must approve and implement the agreement's terms, including any board composition changes

• Company details: Gather current cap table, articles of association, and existing shareholder agreements
• Investment terms: Confirm valuation, investment amount, and share class structure with all parties
• Investor information: Collect KYC documents, proof of funds, and SEIS/EIS eligibility status if applicable
• Protection provisions: Define key investor rights, veto matters, and board representation requirements
• Future planning: Document anti-dilution terms, pre-emption rights, and exit provisions
• Compliance check: Use our platform to generate a legally-sound agreement that meets UK company law requirements

• Investment terms: Clear statement of investment amount, valuation, and number of shares being issued
• Share rights: Detailed description of share class, voting rights, and dividend entitlements
• Warranties: Founder and company representations about business condition and disclosed information
• Investor protections: Anti-dilution provisions, pre-emption rights, and consent matters
• Board rights: Investor director appointment rights and board observer provisions
• Information rights: Regular financial reporting and access to company information requirements
• Exit provisions: Tag-along, drag-along rights and conditions for future share sales

A Seed investment agreement differs significantly from an Investment agreement term sheet, though they're often used in the same fundraising process. While both relate to investment terms, they serve distinct purposes and have different legal weights.

• Legal binding: Seed investment agreements are fully binding contracts that create enforceable obligations, while term sheets are typically non-binding summaries of key terms
• Detail level: Seed agreements contain complete legal provisions, warranties, and protective clauses; term sheets only outline the main commercial points
• Timing: Term sheets come first as negotiation tools, while seed agreements formalize the final, agreed terms
• Documentation: Seed agreements require extensive supporting documents like new Articles and shareholder agreements; term sheets stand alone