[SAFE Investment] Securities Acquisition Proxy

A, a venture capital company that has led various investments, conducted a SAFE investment with B, a foreign venture company.To carry out the SAFE investment process, Veat Law Firm acted as a representative for A, and conducted the securities acquisition reporting work, successfully completing it.

Please note that this securities acquisition report is an image used as a reference, edited based on the actual cases handled by Veat Law Firm.

What is a SAFE investment? It is a conditional equity acquisition agreement, and it is a very useful investment method when investing in early-stage companies where it is difficult to assess the value of the company immediately.

Early startups have innovative ideas, technology, and unlimited potential, but lack revenue, assets, and other factors that make it difficult to calculate the value of the company, which can lead to significant time and energy consumption in traditional investment methods during valuation.

When investing in early-stage companies where it is difficult to assess the value of the company immediately,

Is it possible to postpone the valuation of the company and delay it until later?

 

However, SAFE investment allows early startups to postpone the valuation of the company and delay it until later, and after supplying the investment funds to the company, the startup can receive a ‘formal investment’ by calculating the valuation later, allowing both the startup and the investor to make quick decisions.

However, because the number of shares received by the SAFE investor varies depending on the valuation of the ‘formal investment’, you may be concerned that you will receive a smaller share than you initially expected. In this case, you can prevent these concerns by setting investment terms, so we strongly recommend consulting with a professional with extensive experience in SAFE investments.

Veat Law Firm has a wide range of advisory cases related to SAFE investments, foreign investments, and securities acquisition reports, and provides legal advice that reflects the positions of both the startup and the investor based on its accumulated experience. If you need legal advice related to these matters, please feel free to contact Veat Law Firm.

Thank you.