What is an anti-dilution clause?

An anti-dilution clause protects the investor from a reduction in the value of their stake in a down round (a round with a lower valuation). Variants include full ratchet and weighted average.

What are information rights?

Investors typically require regular financial reports, access to accounts and a right to monitor company management. These rights are defined in the investment agreement.

What is a liquidation preference?

A liquidation preference is the investor's right to receive their investment back (and potentially more) before founders upon a company sale or liquidation. Common variants are 1× non-participating and 1× participating.

What are pro-rata rights?

A pro-rata right allows the investor to maintain their percentage stake in subsequent investment rounds by investing their share of the new issuance. It protects against dilution.

Corporate

Investment agreement

Investment agreement — safe investor entry

Investment amount, equity, anti-dilution and information rights.

Start free Features

GDPR compliant · EU-hosted

Startups with clear investment documentation close a round 40 % faster

Anti-dilution protection is present in 89 % of VC investment agreements

Average time from LOI to signed investment agreement is 6–12 weeks

An investment agreement covers investment amount, company valuation, investor equity, anti-dilution clauses, information rights and exit scenarios. AI generates it for seed, Series A and convertible notes.

Legal context

An investment agreement combines commercial law provisions (share transfer, shareholders' agreement) and civil law. A convertible note is governed by loan law. Larger investments may require merger control approval.

Civil Code § 497 (convertible note); Commercial Code — share transfer, shareholders' agreement; merger control may apply

Legal basis & glossary

When to use a Investment agreement

When the first external investor (angel or VC) is entering
Before a Series A or B fundraise
For a convertible note (SAFE, KISS or custom variant)
When an existing investor is re-investing in a new round

What you get

Company valuation (pre-money)
Anti-dilution clauses
Information and voting rights
Exit and liquidation preference

How it works

From idea to signature

Company valuation (pre-money)

Anti-dilution clauses

Information and voting rights

FAQ

Frequently asked questions about Investment agreement

A convertible note (SAFE, convertible loan) is an investment that automatically converts into equity in the next funding round under pre-agreed terms (cap, discount). It is simpler and faster than a direct equity investment.