1. Download Options
- US: 3 versions of Post-money SAFE (Valuation Cap, Discount, MFN) + Pro Rata Side Letter
- International: Canada, Cayman, Singapore versions available
2. What Is a SAFE?
- Introduced in late 2013 for quick, simple early-stage fundraising.
- Originally "pre-money" SAFE; evolved to "post-money" SAFE in 2018.
- Post-money means: after all SAFE money is counted, before the next priced round.
- Both founders and investors can immediately and precisely calculate dilution.
3. Two Key Functions
- High Resolution Fundraising: Close individual investors when ready -- no need to assemble everyone.
- Simple, Flexible Contract: One-page document, minimal negotiation (usually just the valuation cap), no maturity date or interest rate.
4. Usage Guide
- Read the SAFE User Guide for conversion mechanics, examples, Pro Rata Side Letter details.
5. Limitations
- Not perfect for every situation, but balances startup and investor interests.
- "SAFE terms are designed to fairly balance the interests of both startups and investors."
- Always consult a qualified attorney before using.
Key Terms
- SAFE (Simple Agreement for Future Equity)
- Pre-money / Post-money
- Valuation Cap / Discount / MFN
- Pro Rata Side Letter
- Dilution / High Resolution Fundraising