Once you have negotiated and signed back a term sheet with an investor (whether it is an angel investor or a capital venture investor), the process of ensuring that you have all the proper legal documents will begin. Several key documents must be drafted, negotiated and finalized before an investor will cut a cheque for your business. One of these documents is the subscription agreement.
A subscription agreement provides the details of the purchase price of the sale of the shares of your business. It also includes the representation and warranties that each party will make to each other as part of the agreement. (Learn more about subscription agreements.)
MaRS has created a sample template of a subscription agreement to help streamline business for investors, founders and their respective legal advisors. While MaRS makes this document available for educational purposes and to facilitate the negotiation of terms between investors and startups, the template is yours to use at your own risk. Please see the disclaimer below.
Download the sample subscription agreement template
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