INVESTOR'S

RIGHTS

INVESTOR/INVESTOR RIGHTS AGREEMENTS

 

Explained by an Experienced Los Angeles Business Attorney

 

No matter if your company is a partnership, corporation, c-corporation, or limited liability company (LLC), if you plan to bring investors into the fold, then the investor’s rights should be reduced to writing. The Law Office of Eric J. Proos, P.C., assist partnerships, corporations, c-corporations, and limited liability companies (LLCs) in a multitude of ways when it comes to investors, one of which being drafting the investor rights agreements.

 

Deciding to accept investor money, whether it be family and friends, or from institutional investors such as venture capital firms, is a big decision. Let The Law Office of Eric J. Proos, P.C., handle the contract side.

 

The Law Office of Eric J. Proos, P.C., is here to help you and your partnership, corporation, c-corporation, or limited liability company (LLC) when accepting money from any type of investor.

 

What is Included in an Investor Rights Agreement?

 

Investor rights agreements are just like any other contract. The investor rights agreement includes the some of the following:

 

  1. Obligations the partnership, corporation, c-corporation, or limited liability company (LLC) must fulfill to receive the money;

  2. Obligations the investor must fulfill to receive the equity in the partnership, corporation, c-corporation, or limited liability company (LLC);

  3. Confidentiality by both the investor and partnership, corporation, c-corporation, or limited liability company (LLC) that is receiving the money;

  4. Some type of provision address dilution or anti-dilution in the partnership, corporation, c-corporation, or limited liability company (LLC); and

  5. Disclosure of the partnership, corporation, c-corporation, or limited liability company’s (LLC) financial statements

 

 

A lot of companies get wrapped up in the excitement of accepting the investment money, and if this is the investors first time investing money, then neither party may know what to include in the investor’s right agreement. 

 

Your partnership, corporation, c-corporation, or limited liability company (LLC) should not accept any money from any type of investor without reducing the investment agreement and rights to writing. This can cause confusing or misunderstanding down the line, and your partnership, corporation, c-corporation, or limited liability company (LLC) does not want confusion when it comes to accepting investment dollars.

 

Call the Law Office of Eric J. Proos, P.C. today to schedule your consultation to discuss your partnership, corporation, c-corporation, or limited liability company (LLC) investment procedure and agreement.

 
 
 
 
 
 
 
 
 
 
 
 
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