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Venture Deals

How can an investor know if a startup issues a SAFE to another investor with a different valuation? How can the investor be aware of it or track it?

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Dec 05, 2023
Question reformulated for clarity, but of course let us know if it does not address the original question. 
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Accepted Answer
Dec 05, 2023
An investor may be able to find out if a startup starts issuing SAFEs to other investors with a different valuation, but this will largely depend on the investor's relationship to the startup's founders, as well as the startup's policies on updating their investors. Following up with the startup in accordance with the investor's/Fund's valuation policy is also important. 

However, there are generally no obligations for a startup to tell an investor whenever they issue a SAFE to another investor, regardless of valuation. The same may be not true after a preferred stock financing, where other types of notification obligations may come into play. 

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