Investment Agreements

Optimise the investment potential of your business and attract new capital on attractive terms by using a professionally drafted investment agreement.

Both companies and investors benefit from structuring funding in a way that balances the risks to both sides. Our expert team specialises in venture capital and private equity investments and advises both entrepreneurs and investors on the best way to allocate risk and stage investment, helping you to optimise growth potential using bespoke investment agreements.

Drafting a balanced investment agreement between two parties

Our team of corporate solicitors will:

  • Help entrepreneurs and investors discuss the terms you should include to protect your respective interests.
  • Help you decide the nature of the investment including whether the funding will involve an equity stake for the investor or represents a loan.
  • Help investors carry out due diligence on the target company.
  • Advise you on tranches of funding and set milestones that must be achieved before the company receives each tranche of funding.
  • Help you define the parameters of any funding conditions so that these are fair and balanced between the needs of the investors and those of the business.
  • Draft the completion mechanics so that each party is comfortable with the process to be followed before initial funding and subsequent tranches will be paid.
  • Make sure that the warranties and any restrictive covenants offered by the founders are appropriate for the business’s trading history.
  • Help you obtain third party consents if these are required.
  • Advise and assist on appointments to the board of directors.
  • Draft new articles of association, or amend the existing articles of association, to be in line with the proposed investment agreement.
  • Draft exit conditions and advise on the appropriate exit points for investors.
  • Draft, negotiate and complete the investment agreement on your behalf.

What our clients say

We pride ourselves on delivering an excellent service for clients, but don’t just take our word for it.

Investment agreement essentials

A well-drafted investment agreement helps both investors and businesses monitor and contain the risks associated with the investment. Removing ambiguity and ensuring that the obligations and rights are clear will prevent any confusion or disagreement after the investment is complete. Working with you to understand what you need to achieve from your investment agreement, we will help you answer the following questions:

  • How can I make sure that the investment agreement mitigates risk to both sides?
  • If the investment will be staged (offered in tranches), what process should be followed as each tranche is made?
  • What milestones should be achieved by the company before each tranche can be awarded?
  • How can I make sure that these milestones are realistic and achievable?
  • What warranties should the company or the founders give in connection with the award of funding?
  • Will the terms of the investment require the adoption of new articles of association?
  • Should founders be subject to restrictive covenants to restrict their ability to compete with the company? If so, what is fair and reasonable in the circumstances?
  • How might existing shareholders be impacted by an investment agreement and will I need to get their consent to the new agreement?
  • Should I have the right to appoint a director or an observer to the board?

Benefits of using a specialist to review your investment agreement

We understand that both founders and investors need to maximise the benefits of the funding arrangement and minimise the risks associated with longer-term financing arrangements. We’ll be on hand to ensure that negotiations are as balanced as possible and protect the interests of all parties, while ensuring that the investment agreement does not create restrictions which will negatively impact the business’s objectives for the future.

Sophisticated investors are experienced in protecting their interests and know what they’re looking for when entering into an investment agreement. We can ensure your business is attractive to investors by putting together an agreement that suits your business goals and balances the risk to both sides.

Whether you’re an investor or an entrepreneur, you’ll want certainty when placing or receiving funding. A good investment agreement will provide comfort to all parties as to when, and on what conditions, staged funding will be advanced so that entrepreneurs can concentrate on operating and growing their business and provide good returns to investors.

Start-ups, early-stage, and rapidly growing businesses need to be sure that they will be able to unlock funding as their offering develops. Equally, investors need reassurance that the companies in which they invest are taking proper account of the risks involved as they scale and grow. We can help craft an investment agreement where risk is appropriately monitored.

Who we help: Founders, investors, and entrepreneurs

We support founders and investors with a range of complex funding arrangements, agreements, and transactions. As champions of entrepreneurship, we understand the complexities that come with scaling a business and how vital it is for you to access expert legal support at each stage in your business’ growth. That’s why we offer a holistic approach when providing legal advice across a range of services. Starting with your investment agreement and getting to know your business objectives, we can gain a clear understanding of your specific challenges and provide you with the ongoing legal support necessary to thrive.

Examples of our work

Why choose Harper James Solicitors?

Harper James Solicitors has been purpose-built to give start-ups the legal advice they require quickly and in the most cost-effective way possible. With our legal subscription plans, you can swiftly access an expert team of solicitors across a range of business legal services on a continuous basis so that you can lean on our expertise as and when you need to.

More specifically, our corporate team has years of experience supporting high-growth businesses. Rest assured; we can provide you with pragmatic advice in plain English for all of your corporate matters. Our corporate lawyers have worked at some of the top law firms in the UK, as well as provided in-house counsel for large, international firms. This varied experience means that we are capable of identifying and targeting vital opportunities for further negotiation, and if there isn’t that opportunity, provide you with the necessary advice on the next steps to take.

Find out more about the corporate team here:

Pricing plans

Our three transparent pricing packages are designed to give you the widest possible access to high-quality legal advice, whatever the size and nature of your business:

City

Straightforward access to senior solicitors at a competitive rate.

An affordable solution for businesses needing one-off legal support. Receive ‘City’ partner-level expertise at a fraction of ‘City’ prices.

Enterprise

Have legal peace of mind for £189 per month with additional support from £99 per hour.

A monthly subscription legal support package specifically designed for start-ups and smaller businesses.

On-Demand

For businesses requiring 60+ hours of support a year, with prices equivalent to £99 per hour.

Fully account managed quarterly subscription service for businesses with more complex legal needs.

What next?

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A national law firm

We mainly work remotely, so we can work with you wherever you are. But we can arrange face-to-face meeting at our offices or a location of your choosing.

Our commercial lawyers are based in or close to major cities across the UK, providing expert legal advice to clients both locally and nationally.

Floor 2, Cavendish House, 39-41 Waterloo Street, Birmingham, B2 5PP
Stirling House, Cambridge Innovation Park, Denny End Road, Waterbeach, Cambridge, CB25 9QE
10 Fitzroy Square, London, W1T 5HP
13th Floor, Piccadilly Plaza, Manchester, M1 4BT
Harwell Innovation Centre, 173 Curie Avenue, Harwell, Oxfordshire, OX11 0QG
2-5 Velocity Tower, 1 St Mary’s Square, Sheffield, S1 4LP

Our other locations

Immeuble Danica B, 21, avenue Georges Pompidou, Lyon Cedex 03, Lyon, 69486