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Investment Offer Letter Template for Germany

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Key Requirements PROMPT example:

Investment Offer Letter

"I need an Investment Offer Letter under German law for my SaaS startup seeking to raise €2 million in Series A funding, with specific provisions for technology IP protection and founder share retention rights, to be sent to venture capital firms by March 2025."

Document background
The Investment Offer Letter is a crucial document in the German investment landscape, used when companies seek to raise capital by offering investment opportunities to potential investors. This document must be carefully drafted to comply with German investment laws and regulations, including the Securities Trading Act (WpHG), Investment Products Act (VermAnlG), and other relevant legislation. The Investment Offer Letter typically includes detailed information about the investment opportunity, company valuation, use of funds, risk factors, and terms of the offering. It serves as the initial formal communication in the investment process and can be used for various funding rounds, from seed investments to later-stage financing. The document needs to balance comprehensive disclosure requirements under German law with clear, accessible presentation of the investment opportunity. It's commonly used by startups, scale-ups, and established companies seeking additional capital, and often leads to further negotiation and eventual investment agreements.
Suggested Sections

1. Letterhead and Date: Company letterhead, date, and formal letter formatting

2. Recipient Details: Full name and address of the potential investor

3. Subject Line: Clear identification of the document as an investment offer

4. Introduction: Brief introduction of the company and context of the investment opportunity

5. Investment Opportunity Overview: Key terms of the investment offer including amount, type of security, and valuation

6. Key Terms: Essential terms including price per share/unit, minimum investment amount, and investment class

7. Use of Funds: Clear description of how the invested capital will be utilized

8. Risk Factors: Summary of key risks associated with the investment

9. Response Timeline: Deadline for response and validity period of the offer

10. Next Steps: Clear instructions on how to proceed if interested

11. Closing: Formal closing, signature block, and company details

Optional Sections

1. Current Traction: Include when the company has significant achievements or metrics to share

2. Market Overview: Add when additional context about the market opportunity is beneficial

3. Team Introduction: Include when the management team's experience is a key selling point

4. Exit Strategy: Add when there's a clear exit strategy that would be attractive to investors

5. Previous Funding Rounds: Include when the company has successful previous funding rounds to highlight

6. Strategic Benefits: Add when offering specific strategic advantages to certain types of investors

Suggested Schedules

1. Company Overview Presentation: Detailed presentation deck about the company and investment opportunity

2. Financial Statements: Recent financial statements and projections

3. Term Sheet: Detailed terms and conditions of the investment

4. Due Diligence Package: Key documents required for initial due diligence

5. Subscription Agreement: Form of agreement to be signed if accepting the investment

6. Corporate Documents: Key corporate documents including registration certificates and bylaws

7. Cap Table: Current capitalization table showing ownership structure

8. Investment Process Timeline: Detailed timeline and steps for completing the investment

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































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Relevant Industries

Technology

Financial Services

Healthcare

Renewable Energy

E-commerce

Manufacturing

Biotechnology

Software

Real Estate

Consumer Goods

Infrastructure

Media & Entertainment

Clean Technology

Telecommunications

Professional Services

Relevant Teams

Legal

Finance

Corporate Development

Executive Leadership

Investment Relations

Compliance

Corporate Governance

Business Development

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Investment Director

Corporate Development Manager

Legal Counsel

Investment Manager

Financial Controller

Business Development Director

Venture Capital Associate

Private Equity Manager

Corporate Secretary

Compliance Officer

Managing Director

Finance Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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