Once you have negotiated and signed back a term sheet with an investor (whether it is an angel investor or a capital venture investor), the process of ensuring that you have all the proper legal documents will begin. Several key documents must be drafted, negotiated and finalized before an investor will cut a cheque for your business. One of these documents is the subscription agreement.

The purpose of your subscription agreement

A subscription agreement provides the details of the purchase price of the sale of the shares of your business. It also includes the representation and warranties that each party will make to each other as part of the agreement. (Learn more about subscription agreements.)

MaRS has created a sample template of a subscription agreement to help streamline business for investors, founders and their respective legal advisors. While MaRS makes this document available for educational purposes and to facilitate the negotiation of terms between investors and startups, the template is yours to use at your own risk. Please see the disclaimer below.

Sample subscription agreement template

Download (doc)

Thinking of raising money? We’ve created a free online course to help you get investment-ready. Check out Introduction to Investment Readiness and learn useful tips, tactics and strategies to prepare for your seed fundraising round.


This sample legal document has been made available by MaRS Discovery District for informational purposes only and does not constitute advertising, a solicitation, or legal advice. Neither the transmission of this sample legal document nor the transmission of any information contained in this website is intended to create, and receipt hereof or thereof does not constitute formation of, a lawyer-client relationship. Internet subscribers and online readers should not rely upon this sample legal document or the information contained in this website for any purpose without seeking legal advice from a qualified lawyer practicing in the reader’s province.

The information contained in this website is provided only as general information and may or may not reflect the most current legal developments; accordingly, information on this website is not promised or guaranteed to be correct or complete. MaRS Discovery District expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this website.