an equity investment agreement occurs when investors agree to give money to a company in exchange for the possibility of a future return on their investment.3 min read an equity investment agreement occurs when investors agree to give money to a company in exchange for the possibility of a future return on their investment. fundraising with equity means that investors offer money to your company in exchange for a stake in the business, which presumably will become more valuable as your company gains success. during the initial stage of fundraising, you’ll determine a specific valuation of your company. according to your company’s valuation and the amount of money an investor gives to your company, they will own a percentage of stock in it. for example, say the founders of magnificent puzzles have chosen to transform their small business into an international chain, and they are seeking $500,000 in equity investments. in the future, when magnificent puzzles doubles in value, the value of equity excitement’s initial investment will have doubled as well.