Document background
The Safe Equity Agreement serves as a critical instrument in Indonesia's growing startup ecosystem, providing a simplified alternative to conventional equity investment structures. This document is typically used when a startup company seeks early-stage funding but wants to defer company valuation until a later financing round. Created in compliance with Indonesian corporate law and investment regulations, it bridges the gap between initial funding needs and formal equity rounds. The agreement includes essential provisions for investment amount, conversion mechanisms, and investor rights, while addressing specific Indonesian regulatory requirements such as bilateral language requirements and foreign investment restrictions. The document is particularly valuable for pre-seed and seed-stage investments where traditional equity financing might be premature or impractical.
