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An Investment Agreement sets out the terms and conditions when someone puts money into a business in exchange for ownership or returns. In New Zealand, these agreements protect both investors and companies by clearly spelling out rights, responsibilities, and what each party gets from the deal.

These contracts cover essential details like the investment amount, share allocation, voting rights, and exit strategies. They must comply with the Financial Markets Conduct Act 2013 and often include protections specific to Kiwi businesses, such as pre-emptive rights for existing shareholders and provisions for future capital raising rounds.

Use an Investment Agreement when bringing new capital into your business, especially during startup funding rounds or expansion phases. This agreement becomes essential the moment you plan to accept money from angel investors, venture capitalists, or even family members who expect ownership rights or returns.

The timing matters most when negotiating with professional investors in New Zealand, who typically require these agreements before transferring any funds. It's crucial to have this in place before accepting investment offers, particularly when dealing with amounts above NZ$750,000 or when the investment involves complex terms like preference shares or board representation.

• Simple Agreement For Future Equity: Popular with startups, offering investors future equity rights without immediate share issuance
• Business Investment Contract: Standard format for direct cash investments with immediate equity allocation
• Company Share Agreement: Focuses on detailed share rights, voting powers, and transfer restrictions
• Repurchase Agreement: Allows companies to buy back shares under specific conditions
• Investment Agreement Between Two Parties: Simplified version for straightforward investments between two entities

• Investors: Both individual and institutional investors who provide capital, including angel investors, venture capitalists, and private equity firms active in New Zealand markets
• Company Directors: Responsible for negotiating terms, protecting company interests, and ensuring compliance with the Companies Act 1993
• Legal Counsel: Corporate lawyers who draft and review Investment Agreements, ensuring they meet FMA requirements
• Business Owners: Entrepreneurs and existing shareholders who seek funding while maintaining appropriate control
• Financial Advisors: Professionals who structure deals and advise on investment terms, particularly for complex transactions

• Company Details: Gather current shareholding structure, company constitution, and recent financial statements
• Investment Terms: Document the agreed investment amount, valuation, and type of shares being offered
• Investor Information: Collect investor details, including proof of identity and source of funds for AML compliance
• Existing Agreements: Review any shareholder agreements or previous investment documents that might affect new terms
• Key Dates: Set clear timelines for payment, share issuance, and any conditions precedent
• Documentation Platform: Use our automated system to generate a legally compliant Investment Agreement tailored to NZ law

• Parties and Definitions: Clear identification of investor, company, and key terms used throughout
• Investment Details: Precise amount, valuation, and type of shares or securities being issued
• Rights and Obligations: Voting rights, dividend entitlements, and any special privileges granted to investors
• Transfer Restrictions: Pre-emptive rights, tag-along, and drag-along provisions aligned with NZ Companies Act
• Exit Mechanisms: Clear procedures for share transfers, IPO participation, or company sale
• Warranties: Company representations about its financial position and legal status
• Dispute Resolution: Process for handling disagreements under NZ jurisdiction

While Investment Agreements and Investment agreement term sheets are both used in funding deals, they serve distinctly different purposes in New Zealand's investment landscape. Let's explore their key differences:

• Legal Binding: Investment Agreements are fully binding contracts that create enforceable obligations, while term sheets are typically non-binding preliminary documents outlining key deal points
• Detail Level: Investment Agreements contain comprehensive legal provisions, warranties, and remedies; term sheets offer brief summaries of main commercial terms
• Timing: Term sheets come first as negotiation tools, followed by the formal Investment Agreement once parties reach consensus
• Complexity: Term sheets are deliberately simple outlines, while Investment Agreements require detailed clauses to protect all parties under NZ law