Document background
The Startup Subscription Agreement is a crucial document used when startups are raising capital through the issuance of new shares to investors. This agreement, governed by English and Welsh law, serves as the primary instrument for documenting the terms of share subscription, protecting both the company's and investors' interests, and ensuring compliance with UK regulatory requirements. It typically includes detailed provisions about share rights, warranties, completion mechanics, and often incorporates tax-efficient investment structures like SEIS/EIS. The agreement is particularly important in early-stage funding rounds where clear documentation of ownership and rights is essential for future fundraising and exit opportunities.
