Our first vault was a « pre-money » vault, because at the time of its launch, startups raised small amounts of money before launching a cheap funding round (typically a round of Serie A preferred shares). The safe was an easy and quick way to get the first money in the business, and the concept was that safe owners were just early investors in this future price cycle. But fundraising at the beginning developed in the years following the launch of the original vault, and now startups are raising much larger sums of money than the first round of « Seed » funding. While safes are used for these seed towers, these cycles are really better regarded as totally separate financing rather than « bridges » in subsequent price cycles. As discouraging as it is, Investors and industry organizations in Singapore have partnered to establish model agreements known as Venture Capital Investment Model Agreements (VIMAs) to support start-ups. Other well-established accelerators, such as Y-Combinator, provide free access to SAFEs (Simple Agreement for Future Equity) online, an attempt by industry players and accelerators to tackle some of the problems posed by convertible bonds. But no one agreement is like the other. Some investors are proposing these agreements with modifications. Whether the start-up uses a model or an interested investor provides one, it would be desirable to seek the advice of a quality and experienced consultant in order to understand the impact and impact of different concepts that can be difficult to navigate.
A shareholders` agreement defines the essential conditions governing the affairs of the company as well as the rights and obligations of investors and founders as shareholders of the company. Another innovation of the safe concerns a « proportional » right. The initial vault required the company to allow safe holders to participate in the funding cycle after the funding cycle into which the vault was transformed (for example. B if the safe were converted into series A preferred share financing, a safe holder – now holding a sub-series of Series A preferred shares – would be allowed to acquire a proportionate share of the Series B preferred shares. . . .