Investment Agreement Pro-Investor

Furthermore, the agreement includes protective provisions to minimize the investor’s risk, such as anti-dilution clauses, which prevent the investor’s ownership percentage from being reduced in future funding rounds, and liquidation preferences, which ensure the investor recovers their investment before other shareholders in the event of a company liquidation. Additionally, it may contain covenants that restrict the investee from taking certain actions without the investor’s consent, such as incurring significant debt or selling major assets. Overall, an investment agreement pro-investor is a comprehensive legal document that balances the need for investor protection with the growth and success of the investee’s business.