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

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Authors

Bonso MORIMOTO

Partner
Tokyo

Bonso has extensive experience in domestic and cross-border M&A, capital and business alliances (including establishing joint ventures), legal advice on corporate governance, handling of general shareholders’ meetings, establishing stock options, labor law–related matters, and corporate litigation. He is conscious of the need for smooth communication with clients and other stakeholders, and he always strives to take a strategic approach and to respond flexibly to their needs.
Recently, he has been actively involved in investment cases in which Japanese companies and funds invest in overseas startups, and he provides various legal services to Japanese startups. In addition, he is actively communicating with the market through publications and seminars in order to contribute to the development of the startup investment ecosystem in Japan, utilizing the knowledge and network he cultivated through his studies abroad in the United States.

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