Document background
The Capital Investment Agreement is a crucial document used in Danish business transactions when an investor (whether venture capital, private equity, or strategic investor) makes a significant equity investment in a company. This agreement, governed by Danish law and complying with Danish corporate regulations, serves as the primary document establishing the investment relationship, outlining key terms such as investment amount, valuation, share class rights, and governance provisions. It's particularly important for growth-stage companies seeking capital, companies undergoing expansion, or businesses requiring strategic investment. The document includes comprehensive provisions for protecting both investor and company interests, including detailed sections on representations and warranties, conditions precedent, and various rights and obligations of the parties involved. It must be drafted in accordance with the Danish Companies Act (Selskabsloven) and other relevant Danish financial and corporate legislation.
