[Consultation] Regarding a startup securing new investment with an inflated Valuation, review of potential fraud charges. Law firm Veat

Investors in venture companies generally analyze a company's growth potential and profitability to decide whether to invest. However, in addition to analyzing these business aspects, how previous investors assessed the company's value and whether current investors are planning to invest in the company can also be important factors in deciding whether to invest.

Law firm Veat analyzed whether false claims regarding Valuation could be considered a deception, which is a constituent element of fraud under the Criminal Code, in a case where the representative of Company A persuaded an individual investor to invest based on the claim that previous investors had invested in Company A at a certain value. Whether such claims constitute fraud is difficult to discern without understanding the customary practices and unique culture of the venture capital industry.

Law firm Veat was able to analyze whether such false claims constitute fraud in the relationship between a company and an individual investor through various legal advisory and investment advisory experiences in the venture capital industry.

Thank you.

Law firm Veat