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Co Investment Agreement
"Need a Co-Investment Agreement for a Series B funding round where our VC firm will be the lead investor contributing 60% of a $10M investment, with three other VCs as co-investors, targeting a Singapore-based AI software company, to be completed by March 2025."
1. Parties: Identification and details of all parties to the agreement including co-investors, target company/fund and any other relevant entities
2. Background: Context of the co-investment arrangement, investment objectives, and relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement including investment-specific terminology
4. Investment Structure: Details of investment amounts, shareholding percentages, and capital structure arrangements
5. Investment Process: Procedures for making investments, capital calls, drawdown mechanics and timing
6. Governance Rights: Decision-making processes, voting rights, board representation and management participation
7. Representations and Warranties: Standard and specific representations and warranties from all parties
8. Exit Provisions: Terms for divestment, exit strategies, and liquidation preferences
9. Term and Termination: Duration of the agreement and circumstances for early termination
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Tag-Along Rights: Rights of minority investors to join in sale of majority stake, typically included when protecting minority investors
2. Drag-Along Rights: Rights of majority investors to force minority holders to join in sale, included when majority control is important
3. Anti-Dilution Provisions: Protection against value dilution in future funding rounds, included when future capital raises are anticipated
4. Right of First Refusal: Rights of existing investors to purchase shares before they can be sold to third parties
5. Co-Sale Rights: Rights of investors to participate in sales of other investors' interests
1. Investment Schedule: Detailed breakdown of investment amounts, timing, and capital commitment structure
2. Shareholder Information: Details of existing shareholders, shareholding structure, and capitalization table
3. Investment Policy: Guidelines and criteria for making investments, including any investment restrictions
4. Valuation Methodology: Agreed methods for valuing investments and determining fair market value
5. Form of Deed of Adherence: Template for new parties joining the agreement in the future
6. Corporate Information: Key corporate details of the investment vehicle and target companies
7. Management Rights Letter: Template letter outlining management and information rights of investors
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