Safe Agreement Example

While this approach fits with the original concept of SAFE notes, it made less sense in the world where SAFEs have become independent funding cycles. Thus, the old proportional duty has been removed from the new SAFE notes. But there is a new template-side letter that offers investors with a proportional right in series A Preferred Stock financing on the basis of the investor`s as-converted secure ownership, which is now also much more transparent. There are four versions of the new post-money safe as well as an optional page letter. While the vault may not be suitable for all funding situations, the conditions must be balanced, taking into account both the interests of the startup and investors. As with the original vault, there are still trade-offs between simplicity and completeness, so not all marginal cases are addressed, but we think the vault covers the most relevant and common issues. Both parties are encouraged to have their lawyers check the vault if they wish, but we believe it offers a starting point that can be used in most situations without change. We stick to this belief because we have seen hundreds of companies first-hand every year and helped them raise funds, as well as based on the thoughtful feedback we received from founders, investors, lawyers and accountants with whom we shared the first designs of the post-money vault. All the details have been added, as you see in the image. Some fields are not visible at the beginning. However, if you add the details according to the agreement, the fields will be displayed. Once you have filled in all the details, click on “Send”. SAFE bonds are convertible bonds, which means they can ultimately be converted into equity.

To understand how they work and what needs to be added in the agreement, you need to consider the following conditions and considerations: Keep reading to know everything you need to know about SAFE notes and the template for secure pre-payment. Another innovation of the safe concerns a “proportional” right. The initial vault required the company to allow safe holders to participate in the funding cycle after the funding cycle into which the vault was transformed (for example. B if the safe were converted into series A preferred share financing, a safe holder – now holding a sub-series of Series A preferred shares – would be allowed to acquire a proportionate share of the Series B preferred shares. . . .