CP (Code of Promise)
CP is simply a trust treaty between startup founders and investors before they sign a formal investment agreement.
Startups showcasing, raising funds on the 100X.VC Pitch Day will follow the Code of Promise. A verbal pact, an accord to fulfil the transaction commitment. The compliance and documentation of completing the transaction legally will follow the completion of CP. Startup founders need to honour the CP made to reserve the space for the investor in the equity cap table and equally Investors need to honour their CP to complete the investment. Startup investing process can take a long time to close and can take a windy path.
We would like to track and incentivize CP in the startup ecosystem to facilitate and quicker and smoother transactions. Until the closing of transactions, both startup founders and investors rely on each other's CP, to not break the investment agreement.
● Founders will send a CP subject email detailing the terms of investment.
● Within 48 hours investors will have to reply back with confirmation of their participation.
● Allocation will be reserved for the investor who has replied on the CP email from founders.
● This is not a legally binding nor a legal agreement but a moral promise to fulfil.
● After CP the formal documentation and investment agreement will be signed.