Capital Infusion certificate - A Complete Guide

1. Equity Capital Infusion Certificate

• Definition: This certificate is issued when a company receives funds from investors in exchange for equity shares.
• Purpose: It serves as proof that the investor has provided a certain amount of capital and now holds a specific percentage of ownership in the company.
• Key Features:
  • Details of the investment amount.
  • Number of shares issued.
  • Percentage of ownership granted to the investor.
  • Terms and conditions related to the equity investment.

2. Debt Capital Infusion Certificate

• Definition: This certificate is issued when a company receives funds in the form of loans or bonds that must be repaid with interest.
• Purpose: It serves as a record of the debt agreement between the lender and the borrower.
• Key Features:
  • Principal amount of the loan.
  • Interest rate and repayment schedule.
  • Collateral (if any) securing the loan.
  • Terms and conditions of the debt agreement.

3. Convertible Debt Infusion Certificate

• Definition: This certificate is issued when a company receives funds through a convertible debt instrument, which can be converted into equity under certain conditions.
• Purpose: It provides documentation of the convertible debt arrangement and the potential for conversion into equity.
• Key Features:
  • Principal amount and interest rate.
  • Conversion terms (e.g., conversion rate, conditions for conversion).
  • Maturity date and repayment terms if not converted.
  • Rights and privileges of the debt holders.

4. Government Grant Infusion Certificate

• Definition: This certificate is issued when a company receives non-repayable funds from government bodies or agencies.
• Purpose: It serves as proof that the company has been granted a specific amount of capital for certain initiatives or projects.
• Key Features:
  • Amount of the grant.
  • Purpose and conditions for using the grant.
  • Reporting and compliance requirements.
  • Duration of the grant support.

5. Venture Capital Infusion Certificate

• Definition: This certificate is issued when a start-up or early-stage company receives funds from venture capitalists in exchange for equity.
• Purpose: It serves as documentation of the venture capital investment and the terms agreed upon.
• Key Features:
  • Investment amount.
  • Equity stake acquired by the venture capitalists.
  • Conditions for additional funding rounds.
  • Exit strategy terms for the investors.

6. Angel Investment Infusion Certificate

• Definition: This certificate is issued when a business receives funds from angel investors, typically in the early stages of development.
• Purpose: It records the angel investment and the corresponding equity or convertible debt terms.
• Key Features:
  • Amount of investment.
  • Equity percentage or convertible debt terms.
  • Rights and privileges of the angel investors.
  • Milestones and performance conditions.

7. Crowdfunding Infusion Certificate

• Definition: This certificate is issued when a company raises capital through crowdfunding platforms, either as equity or reward-based funding.
• Purpose: It serves as proof of the capital raised from multiple investors or backers.
• Key Features:
  • Total amount raised.
  • Type of crowdfunding (equity, reward-based).
  • Equity shares or rewards granted to backers.
  • Terms and conditions related to the crowdfunding campaign.

8. Private Equity Infusion Certificate

• Definition: This certificate is issued when a company receives large-scale investments from private equity firms.
• Purpose: It documents the private equity investment and the resulting equity ownership.
• Key Features:
  • Investment amount.
  • Equity stake acquired by the private equity firm.
  • Governance and management rights.
  • Exit strategy and return expectations.