Description
An Angel Investor Agreement is a legal document used when an individual (angel investor) provides capital to an early-stage startup in exchange for equity or convertible debt. Unlike institutional venture capital, angel investment tends to be more flexible, personal, and based on founder–investor trust—yet still requires formal terms to avoid future conflict.
This agreement typically includes the investment amount, ownership percentage or convertible note terms, company valuation (if equity-based), voting rights, exit strategy, use of funds, reporting requirements, and warranties. It may also include right of first refusal, pro-rata investment rights, non-compete clauses, and confidentiality terms.
For the investor, this agreement ensures their funds are used responsibly and that they have a defined path to returns—through dividends, share appreciation, or company sale. For founders, it provides access to strategic capital, mentorship, and potential follow-on funding, while ensuring limited investor control.
Angel agreements may take the form of Simple Agreements for Future Equity (SAFEs), convertible notes, or direct equity purchases. The level of detail varies based on deal complexity and mutual risk appetite.
Used during pre-seed and seed stages, an Angel Investor Agreement supports entrepreneurial growth by creating a structured, mutually beneficial foundation between innovators and early believers in their vision.
Olatunji –
This agreement gave us the confidence to bring on our first angel investor. It outlined all the key terms—equity, milestones, and exit options—clearly and professionally.
Njobuanwu –
I’ve used this template for multiple clients. It’s thorough, easy to adapt, and includes essential clauses like dilution protection and information rights.
Olaitan –
As an investor, I’ve seen plenty of vague contracts. This one struck the perfect balance—protects my interests without overwhelming early-stage founders.
Malami –
We closed our seed round faster because of this agreement. It saved us legal costs and helped us stay focused on building instead of negotiating terms from scratch.
Martins –
This contract template is a must-have for early-stage deal-making. It’s clear, founder-friendly, and ensures both parties understand their rights and obligations.