Document background
The Friends and Family Investment Agreement is designed for situations where individuals seek investment from their personal network rather than traditional funding sources. This document is particularly relevant in New Zealand's business environment, where many small and medium-sized enterprises rely on personal networks for initial funding. The agreement provides a formal structure for what might otherwise be informal arrangements, helping prevent future misunderstandings while maintaining positive relationships. It includes essential elements such as investment terms, return mechanisms, risk acknowledgments, and exit provisions, all tailored to comply with New Zealand legislation including the Contract and Commercial Law Act 2017 and the Financial Markets Conduct Act 2013. The document is particularly useful for start-ups, family businesses, and small enterprises seeking to formalize investment arrangements while maintaining the flexibility and personal nature of friend and family funding.
