Document background
The Venture Capital Agreement serves as the cornerstone document for venture capital investments in India, typically used when companies seek growth capital from professional investors. This agreement must comply with Indian corporate law, particularly the Companies Act 2013, SEBI regulations, and where applicable, FEMA guidelines for foreign investments. It comprehensively addresses key aspects such as investment terms, corporate governance, shareholder rights, and exit mechanisms. The document is essential for both early-stage and growth-stage investments, providing necessary legal protections for investors while ensuring operational flexibility for the company. It includes specific provisions required under Indian law, such as compliance with foreign investment restrictions, sector-specific regulations, and mandatory corporate governance requirements.
