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Document: SAFE with Valuation Cap – no Discount

A SAFE (Simple Agreement for Future Equity) is an instrument that is designed to replace traditional Convertible Promissory Notes – the SAFE allows an investor to make an investment (non-interest accruing and with no maturity date) in your startup. At a future equity financing round, the SAFE will convert to shares of SAFE Preferred Stock based on the terms of the SAFE.

Considered the “standard” or most common form of the agreement, a SAFE with a valuation cap (but no discount) relies on a negotiated valuation cap to determine how it converts into shares of SAFE Preferred Stock at an equity financing round.

Each SAFE generated by SmackDocs is accompanied by a form Board Approval of SAFE Financing.

Preparation Time

The questionnaire can normally be completed in under ten minutes. All questions are straightforward and easily answered.

Typical Users

  • Startups following formation
  • Your startup’s early investors who are seeking (and prefer) to invest without the complications and complexity of a traditional loan

Process

You complete the SAFE and form Board Approval of SAFE Financing via our easy-to-follow questionnaire. SmackDocs asks the necessary questions, you simply supply the answers. Many questions are accompanied by helpful explanations to assist you in refining the answers that you provide. When you have finished, correct, complete, and accurate versions of the two documents will have been created and made available for download with all of your information included.

Navigate through the questionnaire by tabbing from one field to the next and clicking “Next” and “Previous” icons to move from screen to screen. Rushed for time? You may save your answers in a convenient “Answer File” and return to complete the questionnaire later. Answers from your “Answer File” may be updated, changed, or edited as often as you like. Answering all questions in the questionnaire is not required. If you elect to leave any question blank, a corresponding blank space will appear in the document when it is downloaded.

After you have completed the SmackDocs questionnaire, you will be left with a copy of the SAFE and its accompanying form Board Approval of SAFE Financing for download in either (or both) Microsoft Word or Adobe PDF formats.

SAFE with Valuation Cap – no Discount

$10.00

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