Document background
The Startup Investment Agreement is a crucial document used when investors are injecting capital into a startup company in exchange for equity ownership. This agreement, specifically tailored for Hong Kong's legal framework, serves as the primary instrument for documenting the investment terms, rights, and obligations of all parties involved. It typically comes into play during seed rounds, Series A, or subsequent funding rounds, incorporating essential elements such as share subscription, shareholders' rights, corporate governance provisions, and exit mechanisms. The document must comply with Hong Kong's Companies Ordinance, Securities and Futures Ordinance, and other relevant regulations while reflecting common market practices in the Hong Kong startup ecosystem. It's particularly important as it sets the foundation for the ongoing relationship between the startup and its investors, often serving as a reference point for future funding rounds and potential exits.
