If you`re considering investing in a start-up or small business, the Crowdcube platform is an excellent place to start. Crowdcube is a crowdfunding platform that allows investors to invest in companies in exchange for equity. As an investor, you will become a part-owner of the business and, as such, have some say in how the business is run.
When you invest in a start-up through Crowdcube, you will be required to sign a shareholder agreement. This agreement outlines the terms and conditions of your investment and sets out the rights and responsibilities of both the investor and the company.
The Crowdcube shareholder agreement covers several key areas. Let`s take a closer look at each of these areas:
1. Ownership: The agreement will detail the percentage of the business that you will own as an investor. This percentage will be determined by the amount of money you invest and the valuation of the business.
2. Rights: As a shareholder, you will have certain rights. These may include voting rights, information rights, and pre-emption rights. The agreement will outline these rights and how they can be exercised.
3. Corporate Governance: The agreement may outline how the business is to be governed. This may include the appointment of directors, the quorum for board meetings, and the procedures for decision-making.
4. Exit Strategy: The agreement will outline the potential exit strategies for investors. This may include a sale of the business, an initial public offering (IPO), or a buyback of shares.
It is important to note that the Crowdcube shareholder agreement is a legally binding document. It is therefore essential that you read and understand the agreement before investing any money. If you have any questions or concerns, you should seek independent legal advice.
In conclusion, investing in a start-up through Crowdcube can be an exciting opportunity. However, it is important to understand the terms and conditions of your investment before making any commitments. The shareholder agreement is an essential document that outlines your rights and responsibilities as an investor, and it is highly recommended that you familiarize yourself with its contents.
