- Co-Investment Options
Co Investment Options
Because valuation of a startup is often hard to assess and takes up considerable time as well as money, Sidorok Capital offers the SAFE optional investment vehicle which is ideal for early stage investing. The investor provides funding to the company in exchange for the right to receive equity upon some future event. The standard SAFE contains no term or repayment date, and no interest accrues. The investor gets the right to receive the company’s equity during the next stage of future equity financing. The investor will receive shares in the subsequent offering, often at a discount to the price that other investors pay in that offering. The parties can also negotiate a cap on the valuation used in connection with the SAFE, and this may provide additional protection to the investor. For seed stage capital this option provides many advantages, offering a quick and easy investment vehicle.