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A Pre-seed Angel investment agreement is an early-stage funding contract where individual investors (angels) provide capital to startup companies before their first formal seed round. In New Zealand, these agreements typically provide between NZ$50,000 to NZ$250,000 in exchange for equity, helping founders bridge the gap between personal funding and larger venture capital investments.

These agreements outline key terms like ownership stakes, investor rights, and company valuation while following NZ Securities Act requirements. They often include provisions for future funding rounds, board representation, and reporting obligations - making them simpler than full venture capital deals but more structured than informal family-and-friends investments.

Use a Pre-seed Angel investment agreement when your startup needs initial funding beyond personal savings but isn't ready for traditional venture capital. This typically happens when you have a working prototype or early product, but need capital to reach key milestones like market validation or revenue generation.

The agreement becomes essential once you've found angel investors willing to invest between NZ$50,000 and NZ$250,000. It protects both parties by clearly defining ownership stakes, valuation terms, and future funding rights - while meeting NZ Financial Markets Authority requirements. It's particularly valuable for tech startups, innovative manufacturers, and other high-growth businesses seeking professional investment before their seed round.

• Simple Equity Agreement: Most basic form of Pre-seed Angel investment agreement, offering straight equity for cash without complex terms
• Convertible Note Structure: Provides initial investment as debt that converts to equity at the next funding round, popular with NZ tech startups
• SAFE Agreement Variation: Similar to Y Combinator's SAFE but adapted for NZ law, offering simplified terms without valuation requirements
• Multiple Angel Structure: Designed for syndicated investments where several angels invest together, including voting rights and coordination terms
• Strategic Investor Version: Includes additional provisions for angels bringing industry expertise, connections, or operational support

• Startup Founders: Sign as company representatives, provide business details and financial projections, and commit to specific growth milestones
• Angel Investors: High-net-worth individuals who review and sign agreements, often bringing both capital and industry expertise
• Corporate Lawyers: Draft and review agreements to ensure compliance with NZ Securities law and protect both parties' interests
• Company Directors: Approve and execute agreements on behalf of the startup, often becoming bound by governance provisions
• Investment Advisors: Help structure deals and negotiate terms between angels and founders, ensuring fair valuations

• Company Details: Gather incorporation documents, shareholder registry, and current capitalization table
• Investment Terms: Define investment amount, company valuation, and equity percentage being offered
• Investor Information: Collect investor details, proof of eligible investor status under NZ law, and investment entity structure
• Business Documents: Prepare pitch deck, financial projections, and key milestone targets
• Legal Requirements: Review NZ Financial Markets Authority guidelines and securities regulations
• Agreement Structure: Use our platform to generate a legally-sound document that includes all required elements and protections

• Investment Terms: Clear statement of investment amount, equity percentage, and valuation methodology
• Warranties: Company representations about financial status, intellectual property, and material contracts
• Share Rights: Detailed description of share class, voting rights, and dividend entitlements
• Anti-dilution: Protection mechanisms for future funding rounds and share issuances
• Information Rights: Regular reporting requirements and access to company records
• Exit Provisions: Terms for company sale, IPO, or other liquidity events
• Governing Law: Explicit reference to New Zealand jurisdiction and applicable securities laws

A Pre-seed Angel investment agreement differs significantly from a Seed investment agreement in several key aspects, though they're often confused. While both involve early-stage funding, they serve distinct purposes and stages in a company's growth.

• Investment Size: Pre-seed deals typically range from NZ$50,000-250,000, while seed rounds usually exceed NZ$500,000
• Investor Profile: Pre-seed involves individual angels often acting alone, while seed rounds usually include professional investors or small VC firms
• Documentation Complexity: Pre-seed agreements are simpler, with basic protections, while seed agreements include more comprehensive terms and due diligence requirements
• Company Stage: Pre-seed funding usually happens at concept or prototype stage, while seed funding requires some market validation or early revenue
• Valuation Methods: Pre-seed often uses simplified valuation approaches, while seed rounds require detailed financial modeling and market comparables