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A Pre-seed Angel investment agreement sets out the terms when early-stage investors put money into Nigerian startups before their first major funding round. It's the legal foundation that protects both the angel investor who provides capital and the startup founder who needs funds to get their business off the ground.

These agreements typically cover key details like company valuation, investment amount, equity stake, and investor rights under Nigerian corporate law. While less complex than later-stage investment deals, they must still comply with the Companies and Allied Matters Act (CAMA) and Securities and Exchange Commission regulations around private company investments.

Use a Pre-seed Angel investment agreement when your Nigerian startup needs early funding but isn't ready for venture capital. This agreement becomes essential once you've found an angel investor willing to provide capital, usually between ���2 million to ���20 million, in exchange for equity in your company.

The timing is crucial - put this agreement in place before any money changes hands. It protects both parties by clearly defining ownership stakes, voting rights, and exit terms upfront. Nigerian startups in tech, agriculture, and fintech sectors often need these agreements when moving from bootstrap funding to their first external investment.

• Standard equity agreement: Offers angel investors direct company shares in exchange for capital, commonly used by tech startups
• SAFE agreement: Allows investors to convert their investment to equity at a later date, popular with early-stage fintech companies
• Convertible note structure: Combines debt and potential equity features, often used in manufacturing and retail
• Restricted share agreement: Includes vesting periods and performance conditions, typical for professional services
• Hybrid structure: Blends multiple investment features, allowing flexibility for both parties under Nigerian corporate law

• Angel Investors: High-net-worth individuals or investment groups providing initial capital, typically between ���2-20 million
• Startup Founders: Entrepreneurs seeking early-stage funding who negotiate and sign the agreement on behalf of their company
• Corporate Lawyers: Draft and review agreements to ensure compliance with Nigerian investment laws and SEC regulations
• Company Directors: Must approve and execute the agreement as required by CAMA
• Financial Advisors: Help structure deals and validate company valuations for both parties

• Company Details: Gather CAC registration documents, shareholder information, and current capitalization table
• Investment Terms: Define investment amount, equity percentage, and valuation methodology
• Due Diligence: Prepare financial statements, business plan, and growth projections
• Rights Structure: Outline voting rights, board representation, and exit provisions
• Compliance Check: Review SEC requirements and CAMA regulations for private investments
• Documentation: Use our platform to generate a legally-sound agreement that includes all mandatory elements

• Party Details: Full legal names, addresses, and registration numbers of investor and company
• Investment Terms: Precise amount, equity percentage, and payment schedule
• Representations: Company's warranties about its legal status and financial condition
• Investor Rights: Voting powers, information access, and board participation terms
• Exit Provisions: Tag-along rights, drag-along rights, and transfer restrictions
• Governing Law: Nigerian law application and dispute resolution mechanisms
• Execution Block: Signature spaces for authorized representatives under CAMA requirements

A Pre-seed Angel investment agreement differs significantly from a Seed investment agreement in several key ways, though both deal with early-stage funding in Nigeria. Understanding these differences helps you choose the right agreement for your funding stage.

• Investment Size: Pre-seed deals typically involve smaller amounts (���2-20 million) from individual angels, while seed rounds often exceed ���50 million from institutional investors
• Legal Complexity: Pre-seed agreements are generally simpler, with basic terms and protections, while seed agreements include more complex investor rights and compliance requirements
• Company Stage: Pre-seed targets very early businesses, often pre-revenue, while seed funding requires some market traction and proven business model
• Investor Rights: Pre-seed agreements offer basic equity stakes, while seed agreements usually include detailed governance rights, anti-dilution provisions, and board seats