Restart Hungary proposal about SAFE regulation

Vezetői összefoglaló (AI)

• Restart Hungary presented its SAFE proposal on October 12; the article says it remains a draft, not an effective law, and reports no government legislative timetable.
• SAFE would separate early-stage funding from the investor’s later equity conversion, usually at a subsequent financing event; valuation discussions may be deferred, but dilution is not eliminated.
• The proposed instrument would provide a conditional contractual right before conversion, not membership rights, and would have no interest, maturity, or ordinary repayment obligation.
• The proposal seeks a distinct legal framework linking early financing with later capital increases, with corporate, accounting, tax, and company-registration treatment still to be defined.
• The package also proposes automatic conversion, tax treatment tied to a sale, and an investor priority at dissolution; the exact effect depends on future legislation and safeguards.