Document background
The Convertible Equity Agreement is a crucial instrument in the Philippine startup and growth company ecosystem, commonly used when companies seek early-stage investment but face challenges in determining precise equity valuation. This document type, while following Philippine corporate and securities laws, provides a structured framework for investors to fund companies with the right to convert their investment into equity shares at a later date, usually during a qualified financing round or upon reaching specific milestones. The agreement includes essential provisions for investment terms, conversion mechanisms, investor rights, and compliance requirements under Philippine law, making it particularly suitable for startups and growing companies seeking flexible funding solutions without immediate dilution of founder equity. The document addresses key aspects such as conversion price calculations, investor protections, information rights, and governance provisions, all within the context of Philippine legal requirements.
