What are SAFTs & How Do They Mitigate Crypto Regulatory Risk?
The idea for the SAFT is derived from the ‘Simple Agreement for Future Equity’, or SAFE. The SAFE has been widely used for financing purposes among early-stage companies, and acts as an investment instrument alternative to convertible debt. Although SAFE templates can differ, the overall goal was to create a set of basic funding terms startups and investors can adhere to while deferring decisions about valuation, liquidation preferences and participation rights until later-stage rounds of financing.
