[Veat’s Startup Legal Walk] SAFE Investment Introduction

Article posted in 2020-09-09 12:07:18 | VEAT

Calculating the value of early-stage startups is a very difficult task. Early-stage startups have no revenue, no assets, no factories, and no real estate. There are only 2 to 3 founders, and they have good ideas and technology, but it's impossible to predict how much value these ideas will have later on.

SAFE is a type of investment that ‘delays’ valuation assessment of such companies. SAFE investors initially supply funds to the company and then receive a ‘formal investment’ with valuation once the company receives equity later.

 

Do you have more questions? Please check out Senior Partner Attorney An Il-won’s column on the introduction of SAFE investment!

Thank you. Veat