Simple Agreement For Future Equity Template

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A safe is intended to be simple for both companies and investors with the usual path to agreement requiring the negotiation of only one item the valuation cap 3. A simple equity security has the potential to become standardized and a.

A safe is a simple agreement for future equity.

Simple agreement for future equity template. What are the required elements of this type of safe agreement. A simple agreement for future equity safe is a financing contract that may be used by a startup company to raise capital in its seed financing rounds. Paul graham and ycombinator have recently created and publicly recommended the usage of safes over convertible debt notes.

The instrument is viewed by some as a more founder friendly alternative to convertible notes. Create this template in minutes. This tool provides a template for a simple agreement for future equity safe with a valuation cap and no discount rate also known as a standard safe and can be adapted to suit your organizations needs.

Y combinator introduced the safe simple agreement for future equity in late 2013 and since then it has been used by almost all yc startups and countless non yc startups as the main instrument for early stage fundraising. An investor makes a cash investment in a company but gets company stock at a later date in connection with a specific event. The investment vehicle of choice for reg cf issuers by.

Simple agreement for future equity safe this certifies that in exchange for the payment on or about date of agreement by the university of chicago on behalf of its booth school of businesspolsky center for entrepreneurship and. Latex templates for safe simple agreement for future equity term sheets. A safe simple agreement for future equity is an agreement between an investor and a company that provides rights to the investor for future equity in the company similar to a warrant except without determining a specific price per share at the time of the initial investment.

These requirements can have unintended negative consequences. A simple agreement for future equity safe is a contract by which an investor makes a cash investment into a company in return for the rights to subscribe for new shares in future. Agreement template simple agreement for future equity business template safes.