Safe Investment Refunds Clarification

Summary

SAFE agreements generally do not allow for refunds as they are designed for future equity, not as loans. Its important to review the specific terms of your agreement to confirm this. If the agreement does not mention refunds, the investment is likely non-refundable. If there is confusion, consulting with a lawyer can help clarify the terms and address the investors concerns.

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I am building a start-up and I am on my freinds and family round. We did a SAFE docuemnt to have people invest about 11 months ago. The webiste is taking longer then we anticipated. One of the people who invest wants his investment back. Do we retunr back his investment?
Hi ****!
SAFE (Simple Agreement for Future Equity) investments are not typically refundable because they are agreements to provide equity in the future rather than debt that needs to be repaid. However, the specific terms of your SAFE agreement are important.
Does your SAFE agreement include any provisions for refunds or redemption of the investment?
can I upload the file for you to see
Hi ****! Unfortunately, I can't review files directly. However, I can provide general guidance. Generally, SAFE agreements are non-refundable, but specific terms can vary. Could you check if your SAFE agreement includes any provisions for refunds or redemption of investments?
I don't see it
Case Rating: *
It sounds like the investor might be confused about the terms of the SAFE agreement. You could suggest reviewing the agreement with a lawyer to clarify the terms.
Would you like more detailed guidance on how to proceed or need help finding a lawyer?
Ok..TY
Case Rating: *
It sounds like the investor may misunderstand the terms of the SAFE agreement. If you need further assistance, consulting with a lawyer might be beneficial to clarify the terms and manage the investor's concerns. If you have any other questions, feel free to ask!