Partnership Agreement with Investors in Spain
Protect your interest when partnering for investment
Our corporate lawyers will guide you through the process step-by-step.
How can a lawyer help me?
Legal assistance is crucial when drawing up an Investment Agreement as strong and serious economic consequences derive from it.
At Lexidy LegalTech Boutique, our corporate lawyers will assist you with drafting an agreement that is suitable for your case and complies with Spanish corporate regulations.
We will also help you understand the risks and benefits of any agreement proposal you may receive from a third party and help you negotiate the clauses to protect your interests.
A business can be affected by unexpected changes. One of the most common risks that an investor assumes is being diluted, both in political and economic aspects, if there are successive funding rounds. At Lexidy we will provide you with the necessary legal information so you are aware of your rights as a shareholder and have the tools to prevent dilution occuring.
Finally, a diligent lawyer will help enforce your if one of the parties does not comply with its obligations. This is more common than many think.
¨We will be with you each step of the journey.¨
What is an Investment Agreement?
An Investment Agreement is a legal contract between two parties where one of them agrees to place a certain amount of money in a business. Generally, they become a partner in the company and receive an economic return.
There are several types of Investment Agreement, however they should all share the following traits:
- An investment of money.
- Be placed in a common project/venture of the parties.
- They should imply an expectation of profit for the investor.
- The profit should be obtained from the effort of others.
How can an Investment agreement help my startup?
Generating enough cash-flow and having enough economic resources can be challenging for a young company.
Getting a liquidity boost from an investor has far fewer formalities than applying for a traditional loan from a financial institution and it can come with other perks, such as guidance, industry expertise and networking.
What are the requirements?
The law does not require a specific template as this is an area where creativity can be exercised.
However, the structure of any agreement should contain the following content:
- Who the parties are.
- The purpose of the investment.
- The investment scheme.
- Each parties’ obligations.
- Confidentiality or non-disclosure clauses.
- Maturity date of the investment.
- Well-defined milestones that trigger economic rewards.
- Signature of all the parties.
Frequently Asked Questions
The main risk is the bankruptcy of the venture and the loss of capital. However, you should also consider the serious risk posed by the potential dilution of your investment should new shareholders enter the equation. That is why a strong lawyer would work with an investor to include anti-dilution clauses in their investments.
If the shareholder’s agreement is well-drafted it services to regulate everyone’s role, so this should eliminate the risk of regular interference by investors. Our team of lawyers can help clients to ensure this behavior is minimized.
We are a department formed by qualified legal experts who have been trained in the field of corporate law. We work on these requests every day and it’s our passion. For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful process. We want to help you achieve your goals and dreams.
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