Simple Equity Agreement Sample



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Our first safe was a „pre-money“ safe, because at the time of its launch, startups collected smaller sums of money before collecting a funding cycle (typically a Preferred Stock Round Series). The safe was a quick and simple way to get the first money into the business, and the concept was that safe owners were only early investors in this future price cycle. But fundraising, staged early on, grew in the years following the introduction of the initial safe, and now startups are raising far more money than the first „seeds“ funding cycle. While safes are used for these seed rounds, these towers are really better regarded as totally separate financing, instead of turning „bridges“ into subsequent price cycles. All the details have been added, as in the picture. Some fields are not visible at first. However, if you add the details in accordance with the agreement, the fields will be displayed. Once you`ve filled in all the details, click „Send.“ SAFThe early stages of fundraising save investors and startups time and money they would otherwise spend to develop unique legal agreements. It is a brief five-page document that describes all the details.

Evaluation ceilings are the only negotiable detail in a SAFE. a convertible bond is a maturity date at which, if the conversion does not take place, the entity returns the amount of the investment to the investor, but not a SAFE; a convertible loan with interest, but not a SAFE; and a convertible note identifies the minimum amount of funds to be included in equity financing, but not a SAFE. The preferred share price to offer for equity financing; 2) the preferred share price that must be offered with a discount for equity financing; 3. the price per share determined by a pre-negotiated valuation ceiling (see below); or four. Option 2 or Option 3 below. Unlike a convertible bond, a Simple Agreement for Future Equity (SAFE) does not involve interest, expires and does not set a minimum amount of funds to be financed in equity. By adding convertible documents to the definition of post-money company capitalization, the denominator becomes larger in this simple problem of division. And with a higher denominator, the lower the ratio, i.e.

the price per share. With the low price per share, the SAFE investor receives more shares for his money. And the more shares they receive, the more ownership of other shareholders is diluted. Whether you`re using the safe for the first time or are already familiar with safes, we recommend reading our Safe User Guide. The Safe User Guide explains how the safe converts with sample calculations, as well as other details on the secondary letter pro-rata, explanations of other technical changes we made to the new safe (for example. B the language of tax processing) and suggestions for optimal use.



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