If ICO draws some minor initial "seed" investment, what papers are signed? SAFT?
If the given ICO fails to hit its softcap, what happens?Have the early seed investor just lost his stake?
Please will you elaborate where I can learn this or maybe you know the ropes please could you share thank you
SAFT is a term used in venture capital market. So if a company has raised a certain amount from VCs, they must have signed SAFT with that VC fund management. But I am not sure whether they will be making it public because the early investors usually get a lot more priority than the regular investors and early investors usually get exorbitant amount of discounts. So usually VC management puts an NDA agreement in place.
Secondly, if an ICO fails to reach its softcap. Then your stakes are not forfited. Failing to reach softcap means, the ICO will most likely wind up their business plan and the investors will get their money back. However, it mainly depends on the agreement put in place during the time of investment. For retail investors like you and me, the money is refunded by the ICO company. At least that is the expectation. Hope this helps!
