Document background
The Profit Sharing Agreement For Investors is a crucial document used when companies seek to raise capital while offering investors a share in future profits rather than traditional equity. This agreement, governed by Dutch law, is particularly relevant for businesses looking to maintain control while providing attractive returns to investors. It must comply with the Dutch Financial Supervision Act (Wft) and Corporate Law, making it suitable for both startup funding and established business expansion. The document typically includes detailed mechanisms for profit calculation, distribution schedules, investor rights, reporting requirements, and exit provisions. It's especially valuable for companies seeking alternative financing structures or when traditional equity arrangements are not preferred.
