Free Startup Seed Funding Contract Template
Startup Seed Funding Contract
This Startup Seed Funding Contract (the "Contract") is entered into as of [Date], by and between:
[Your Company Name], a [Legal Structure of the Company] duly organized and existing under the laws of [Jurisdiction], with its principal place of business located at [Address] (the "Company"), and
[Investor's Name], an individual/entity duly organized and existing under the laws of [Jurisdiction], with its principal place of business located at [Address] (the "Investor").
Background
WHEREAS, the Company is engaged in the business of [Brief Description of the Company's Business]; and
WHEREAS, the Investor desires to provide seed funding to the Company to support its business operations and growth initiatives.
Agreement
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Seed Funding
1.1 Subject to the terms and conditions of this Contract, the Investor agrees to provide seed funding to the Company in the amount of [Amount in Words] USD ([Amount in Numbers] USD) (the "Seed Funding").
1.2 The Seed Funding shall be utilized by the Company solely for the purpose of [Specify Purpose of the Funding].
1.3 The Seed Funding shall be provided in [Number of Installments] installments as follows:
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Installment 1: [Amount] USD, due on [Date]
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Installment 2: [Amount] USD, due on [Date]
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[Add more installments as needed]
2. Equity Investment
2.1 In consideration for the Seed Funding, the Company shall issue to the Investor [Number of Shares] shares of the Company's common stock (the "Shares").
2.2 The Shares shall represent [Percentage]% ownership interest in the Company on a fully diluted basis.
3. Vesting Schedule
3.1 The Shares issued to the Investor shall be subject to a [Vesting Percentage]% vesting schedule over a period of [Vesting Period] years, with [Cliff Period] months cliff.
4. Anti-Dilution Protection
4.1 The Investor shall be entitled to anti-dilution protection in the event of any subsequent issuance of equity securities by the Company at a price per share lower than the price per share paid by the Investor under this Contract.
5. Board Representation
5.1 Upon the execution of this Contract, the Investor shall have the right to appoint [Number] members to the Company's board of directors.
6. Use of Proceeds
6.1 The Company shall use the Seed Funding solely for the purposes specified herein and shall provide the Investor with regular updates on the use of proceeds.
7. Confidentiality
7.1 The parties agree to keep confidential all information exchanged in connection with this Contract, except as required by law.
8. Governing Law
8.1 This Contract shall be governed by and construed in accordance with the laws of [Jurisdiction].
9. Entire Agreement
9.1 This Contract constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral, relating to such subject matter.
IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first above written.
[Your Company Name]
By:
Name: [Authorized Signatory]
Title: [Title of Authorized Signatory]
[Investor's Name]
By:
Name: [Authorized Signatory]
Title: [Title of Authorized Signatory]
