Simple Investment Agreement

Simple Investment Agreement Template for Denmark

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Key Requirements PROMPT example:

I need a Simple Investment Agreement for a 500,000 EUR investment in my Danish tech startup, with the investor requesting board observation rights and quarterly financial reporting obligations, to be completed by March 2025.

What is a Simple Investment Agreement?

The Simple Investment Agreement is a fundamental legal document used in Danish business transactions when an investor seeks to acquire equity in a company through a straightforward investment process. This document is particularly suited for early-stage investments, angel investors, or situations where a full-scale shareholders' agreement may not be necessary. The agreement must comply with Danish corporate law, particularly the Danish Companies Act (Selskabsloven) and the Danish Contracts Act (Aftaleloven). It typically includes essential provisions such as investment terms, share issuance, basic investor rights, and company warranties, while remaining simpler and more streamlined than complex investment agreements. The document serves as a crucial tool for documenting the investment relationship while providing necessary legal protections for both the investor and the company.

What sections should be included in a Simple Investment Agreement?

1. Parties: Identification of the investor(s) and the company, including registration numbers and addresses

2. Background: Context of the investment, including brief company description and investment purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Investment Amount and Shares: Details of the investment amount, number and class of shares being issued, and price per share

5. Completion Mechanics: Steps for completing the investment, including payment terms and share issuance process

6. Company Warranties: Standard warranties about the company's legal status, financial position, and business operations

7. Investor Warranties: Basic warranties from the investor regarding capacity to invest and funds origin

8. Information Rights: Investor's rights to receive financial and operational information

9. Board Representation: Rights regarding board representation or observer rights, if any

10. Transfer Restrictions: Limitations on the transfer of shares

11. Confidentiality: Obligations regarding confidential information

12. Notices: Process for formal communications between parties

13. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

14. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments

What sections are optional to include in a Simple Investment Agreement?

1. Anti-dilution Protection: Protection against future down-rounds, used for larger or more sophisticated investments

2. Tag-Along Rights: Right to join in sale of shares by other shareholders, typically included for minority investor protection

3. Drag-Along Rights: Right to force other shareholders to join in a sale, usually included when investor takes significant stake

4. Veto Rights: Specific matters requiring investor approval, included for larger investments or strategic investors

5. Dividend Rights: Special provisions regarding dividend payments, if different from standard share class rights

6. Exit Rights: Specific provisions regarding future exit scenarios, included for larger investments

7. Founders' Commitments: Specific obligations for founders including non-compete and commitment periods, used when founders are key to business

8. Convertible Features: If the investment includes convertible elements, details of conversion mechanics

What schedules should be included in a Simple Investment Agreement?

1. Schedule 1: Cap Table: Pre and post-investment capitalization table showing all shareholders

2. Schedule 2: Company Information: Detailed company information including registration documents and corporate structure

3. Schedule 3: Warranties: Detailed list of company warranties

4. Schedule 4: Completion Requirements: Detailed list of conditions precedent and completion deliverables

5. Schedule 5: Articles of Association: New or amended articles of association reflecting the investment

6. Schedule 6: Business Plan: Company's business plan and use of investment proceeds

7. Schedule 7: Key Financial Information: Recent financial statements and key financial metrics

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology

Manufacturing

Renewable Energy

Healthcare

Biotechnology

Financial Services

Real Estate

E-commerce

Professional Services

Consumer Goods

Agriculture

Clean Technology

Software

Media and Entertainment

Transportation and Logistics

Relevant Teams

Legal

Finance

Corporate Development

Executive Leadership

Investment

Compliance

Business Development

Administrative

Board of Directors

Corporate Governance

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Investment Manager

Corporate Lawyer

Legal Counsel

Investment Director

Business Development Manager

Company Secretary

Financial Controller

Compliance Officer

Managing Director

Board Member

Investment Analyst

Corporate Development Manager

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