Document background
The Simple Agreement For Equity (SAFE) has become increasingly popular in Malaysia's growing startup ecosystem as an alternative to traditional convertible notes. This document is typically used when a company needs to raise capital quickly without immediately setting a valuation or issuing equity. The agreement, while following Malaysian legal requirements, provides flexibility in terms of valuation and conversion triggers, making it attractive for both startups and investors. It includes essential provisions for investment terms, conversion mechanics, and investor rights, all structured within the framework of Malaysian corporate and securities laws. The document is particularly valuable in early-stage funding rounds where traditional equity financing might be premature or impractical.
