Templates
Financial
SAFE Note (Simple Agreement for Future Equity)
A streamlined investment instrument allowing startups to raise capital quickly without setting a valuation. Converts investor funds into equity upon a future priced round or liquidity event.
Key Clauses
1
Valuation Cap
Sets the maximum company valuation at which the SAFE converts to equity.
2
Discount Rate
Provides investors a percentage discount on the share price in the next round.
3
Conversion Events
Defines the triggering events that convert the SAFE into equity shares.
4
Pro Rata Rights
Grants investors the right to maintain their ownership percentage in future rounds.
5
Dissolution Terms
Specifies what happens to the investment if the company dissolves.
Use This Template
When You Need This
- Raising a pre-seed or seed round without a formal valuation
- An investor wants a simple instrument instead of a convertible note
- Closing funding quickly with minimal legal complexity