Side Letters and SAFEs: What LatAm founders should expect and avoid

Side Letters and SAFEs: What LatAm founders should expect and avoid

Simple Agreements for Future Equity (SAFEs) have become a popular funding tool for early-stage startups across Latin America, offering an avenue to raise capital with minimal friction and legal costs. While SAFEs are designed to be simple, many institutional investors request additional protections through a Side Letter. With LatAm companies, investors often push for additional protections that can tilt the playing field. Understanding these nua…