Ministry of SMEs and Startups Holds Public Hearing on 'Venture Investment Standard Contract'... "Reflecting New Investment Types"

Listening to Startup and Venture Industry Voices on the Standard Venture Investment Agreement

The Ministry of SMEs and Startups announced on the 27th that it will hold a public hearing online to prepare a standard contract for venture investment. Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] The Ministry of SMEs and Startups announced on the 27th that it will hold a public hearing online to prepare a standard contract for venture investment.

This public hearing was organized to foster a fair contract culture in venture investment, reflect newly introduced investment types such as the Simple Agreement for Future Equity (SAFE), and gather opinions from the startup and venture industry. The event will be broadcast live on YouTube.

So far, related venture investment organizations such as the Korea Venture Capital Association, Korea Angel Investment Association, and Korea Accelerator Association have formed a working council and consulted experts including lawyers to prepare a draft of the "Standard Venture Investment Contract."

At this public hearing, opinions from the startup and venture industry will be collected regarding the reflection of newly introduced venture investment types under the Act on Promotion of Venture Investment (hereinafter referred to as the Venture Investment Act), and the segmented contracts by investment stage.

The main presentation topics include ▲ reflection of new investment types ▲ segmentation by investment stage ▲ separation of shareholder agreements ▲ consultation targets between founders and shareholders regarding company management.

The Korea Venture Capital Association and others plan to distribute the final version of the standard venture investment contract early next year after incorporating the opinions gathered through the public hearing, allowing companies receiving investments and investors to use it voluntarily.

Jeon Sehee, Director of the Investment Recovery Management Division at the Ministry of SMEs and Startups, stated, “Startup and venture companies attracting venture investment for the first time without professional legal knowledge face many difficulties in drafting contracts with investors,” and added, “We will fully collect opinions from the startup and venture industry at today’s public hearing to ensure a fair standard venture investment contract is prepared.”

This content was produced with the assistance of AI translation services.