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A Seed investment agreement lets early-stage Belgian startups secure their first major funding from investors in exchange for equity. It spells out how much money investors will provide, what percentage of the company they'll receive, and key terms like voting rights and board seats.

Under Belgian corporate law, these agreements typically include anti-dilution protections, information rights, and specific exit provisions. Startups often use them to raise between €50,000 and €500,000, with investors getting convertible shares that may change into common stock during later funding rounds. The agreement must comply with Belgium's Financial Services and Markets Authority (FSMA) regulations on private placements.

Use a Seed investment agreement when your Belgian startup needs its first substantial capital injection to move beyond bootstrapping. This becomes essential once you've exhausted personal funds and need €50,000 to €500,000 to fund key activities like product development, market entry, or hiring core team members.

The timing works best after you've validated your business model but before seeking Series A funding. Belgian startups typically use these agreements when they have a working prototype or early customer traction, and need capital to scale. It's particularly valuable for tech companies, biotech firms, and innovative startups that require significant upfront investment before generating revenue.

• Simple Seed Agreement: Basic investment terms with straightforward equity allocation, typically used by Belgian tech startups raising under €100,000
• Convertible Note Seed Agreement: Offers debt that converts to equity at a future funding round, popular among Belgian biotech startups
• SAFE (Simple Agreement for Future Equity): A streamlined version that delays equity pricing, gaining popularity in Belgian startup hubs
• Full Shareholders Agreement: Comprehensive version including detailed governance rights, used for larger seed rounds above €250,000
• Staged Investment Agreement: Structures funding in milestone-based tranches, common in Belgian R&D-intensive startups

• Startup Founders: Lead negotiations and sign the Seed investment agreement on behalf of their company, often consulting with advisors on terms
• Angel Investors: Individual investors who provide capital and expertise, typically investing between €25,000 and €250,000
• Business Lawyers: Draft and review agreements to ensure compliance with Belgian corporate law and protect both parties' interests
• Early-Stage VCs: Professional investment firms specializing in seed-stage deals, often leading investment rounds
• Board Members: Must approve the agreement and oversee its implementation according to Belgian governance requirements

• Company Details: Gather current valuation, cap table, and financial projections for the next 24 months
• Investment Terms: Define investment amount, equity percentage, and any convertible note specifics
• Due Diligence: Prepare key contracts, IP documentation, and financial statements following Belgian FSMA guidelines
• Governance Rights: Outline board representation, voting rights, and information access for investors
• Exit Provisions: Specify tag-along rights, drag-along rights, and anti-dilution protections
• Compliance Check: Ensure alignment with Belgian corporate law and tax regulations before finalizing

• Party Information: Full legal names, addresses, and registration numbers of the startup and all investors
• Investment Terms: Precise amount, valuation, and number of shares or convertible securities issued
• Representations: Company warranties about financial status, IP ownership, and material contracts
• Investor Rights: Information access, board seats, and pre-emptive rights for future rounds
• Transfer Restrictions: Lock-up period, right of first refusal, and co-sale rights
• Exit Provisions: Tag-along and drag-along rights following Belgian M&A regulations
• Governing Law: Explicit reference to Belgian corporate law and jurisdiction

A Seed investment agreement differs significantly from an Investment agreement term sheet in both scope and legal binding power. While both documents are crucial in the investment process, they serve distinct purposes in Belgian startup funding.

• Legal Effect: Seed investment agreements are fully binding contracts that finalize investment terms, while term sheets are typically non-binding preliminary documents outlining key deal points
• Timing: Term sheets come first as negotiation frameworks, followed by the detailed Seed investment agreement that formalizes the deal
• Detail Level: Seed agreements contain complete legal provisions, warranties, and compliance requirements, whereas term sheets provide brief summaries of main terms
• Implementation: Seed agreements trigger immediate share issuance and capital transfer, while term sheets merely outline intended actions