Document background
The Advanced Subscription Agreement (ASA) serves as a bridge financing tool commonly used in the United States when companies need to raise capital quickly without immediately setting a valuation. It's particularly useful for startups between formal funding rounds or companies preparing for a larger financing event. The ASA provides investors with the right to receive shares at a future date, typically at a discount to the next qualifying funding round, while giving companies immediate access to capital. This document must comply with U.S. securities regulations and typically includes provisions for conversion mechanics, valuation caps, discount rates, and investor protections.
