Document background
The Simple Agreement For Equity (SAFE) was originally developed by Y Combinator and has been adapted to function within the Austrian legal framework. This document is primarily used by Austrian startups seeking to raise capital efficiently without immediately setting a company valuation or issuing shares. The agreement provides a framework for investment that converts to equity upon specific trigger events, such as priced funding rounds or exit events. It includes essential provisions required under Austrian corporate law while maintaining the streamlined nature of the original SAFE concept. The document is particularly suitable for early-stage companies in Austria seeking investment from both domestic and international investors, offering a balanced approach between legal compliance and practical functionality. It includes specific provisions for conversion mechanics, investor rights, and corporate governance that align with Austrian regulatory requirements while protecting both investor and company interests.
