Alternative of Building up the Equity Financing Base of Small and Medium Ventures including Startups to Boost up their Innovative Growth - Validating Review over the Act of Promoting Venture Investment including SAFE Rule -

Youngseok, Yang

doi:10.33982/clr.2019.05.30.2.121

Cited by 2 publications

(1 citation statement)

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“…기업가치 과대평가는 투자자의 이익을 제한하거나 손실을 가져다주기 때문에 투자자 보호 관점에서 문제가 될 수 있으며, 투자자들이 정보비대칭 문제에 대해 크게 직면하여 기업가치 적정성에 대한 믿음이 사라진다면 투자자들의 외면으로 창업•벤처기업이 크라우드펀딩을 통해 자금을 조달하는 것이 힘들어질 수도 있다. 전통적으로 창업 초기 기업의 기업가치는 상당부분 추측 또는 짐작으로 결정되는 경우가 많아 투자자와 기업 간 협상의 쟁점이 되고 있으며, 정보비대칭이 해소되지 않는 경우 기업은 적정가치보다 더욱 할인된 주가로 자금 조달을 해야 하는데 크라우드펀딩 시장에서도 이와 같은 문제에 직면할 수 있다(Bernthal, 2018;Yang, 2019). 본 연구에서는 증권형 크라우드펀딩의 기업가치 과대평가 문제를 살펴보기 위해 크라우드 펀딩을 통해 주식 발행을 시도하고, 크라우드펀딩 전이나 후에 K-OTC 및 코넥스에서 거래되어 주가 추이를 확인할 수 있는 기업들에 대해 크라우드펀딩 시 적용한 기업가치와 K-OTC 및 코넥스 거래 기간 동안의 기업가치를 비교해보았다.…”

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The Introduction and Effect of SAFE in Equity-Based Crowdfunding

정¹,

오²

2020

Korean J Financ Stud

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This study analyzes the valuation problems surrounding equity-based crowdfunding issuers and examines the introduction of the simple agreement for future equity (SAFE) as a means of solving them. We first analyze four stocks with crowdfunding experience listed on KONEX and K-OTC. In all instances, market capitalization consistently fell below the level at the time of the crowdfunding application. We therefore suggest the introduction of SAFE in crowdfunding as a potential solution. SAFE ameliorates the over-valuation problem by setting only minimum requirements such as valuation caps and by delaying the evaluation of corporate value until a follow-up investment is made. However, investor protection should be considered when introducing SAFE in Korea. First, the definition of “subsequent investments” should be clarified to prevent the issuer from intentionally delaying the transfer of shares. Second, the inclusion of financial performance in SAFE's share conversion conditions would prevent the firm from delaying share conversion while receiving favorable cash flows. Third, the scope of companies that can issue SAFE should be clearly defined to prevent firms from misusing them to avoid managerial interference. This study contributes as the first study within the Korean academia on the introduction and effectiveness of SAFE in crowdfunding.

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The Introduction and Effect of SAFE in Equity-Based Crowdfunding

정¹,

오²

2020

Korean J Financ Stud

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Determinants of Agri-food Investment from Fund Managers' Viewpoint

Lim,

Kim

2024

Economia Agro-Alimentare

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A more welcoming investment environment for the agri-food sector is envisioned as a result of the 2020 Venture Investment Promotion Act and the subsequently revised Act on Creation and Operation of Agricultural, Fisheries, and Food Investment Funds in South Korea. This study seeks to identify strategies to encourage venture investment for agri-food entrepreneurs by relying on these new legal environments. This study uses the Analytic Hierarchy Process to assess factors that facilitate investing based on a survey of fund managers and investment analysts who have invested in agri-food products. The findings indicate that the readiness of agri-food enterprises to adopt corporate-like management practices and their willingness to pursue commercialization are the primary determinants of investment facilitation. Deregulated investment environments and enhanced investor incentive systems rank as the second and third most significant determinants. The results offer insights into strategic policy initiatives aimed at increasing investment for startups, young entrepreneurs and venture farmers.

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Alternative of Building up the Equity Financing Base of Small and Medium Ventures including Startups to Boost up their Innovative Growth - Validating Review over the Act of Promoting Venture Investment including SAFE Rule -

Cited by 2 publications

References 0 publications

The Introduction and Effect of SAFE in Equity-Based Crowdfunding

The Introduction and Effect of SAFE in Equity-Based Crowdfunding

Determinants of Agri-food Investment from Fund Managers' Viewpoint

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