Fundraising should always be accompanied by two things: due diligence and proper structuring. While there are several aspects to structuring, one of the most important is the agreement or instrument that is being executed for the fundraising.
An investment agreement generally defines the terms and conditions of the fundraise, the rights and obligations conferred on each involved party, the method by which all parties can exit, and so on. These clauses safeguard the interests of the company, its promoters, and incoming investors.
