Introduction of the Japanese Version of “SAFE” for Venture Investment

Since the Simple Agreement for Future Equity （“SAFE”） made its debut in 2013 via Y - Combinator, it gradually has come to be recognized as an effective investment instrument, especially for early-stage startups in the United States. Through SAFE, investors have the right to convert the value of their investment into shares of the issuer upon predetermined event triggers. Such future events are usually the issuer’s next priced equity round. The advantages of SAFE venture investments can be divided into three categories. First, investors need not （i） calculate the enterprise value of issuers at the time of investments through SAFE and （ii） implement due diligence of issuers before determining investment conditions. As a result,...To read the full article, please see the PDF file