{"componentChunkName":"component---src-templates-blog-post-ts","path":"/overview-of-safe/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"a50826ca-0aa3-5738-86d2-dae3e97a41d2","excerpt":"What is this document? The SAFE (Simple Agreement for Future Equity) is an agreement allowing a Company to raise equity from Investor(s). When would I use this…","html":"<h3>What is this document?</h3>\n<p>The SAFE (<strong>Simple Agreement for Future Equity</strong>) is an agreement allowing a Company to raise equity from Investor(s).</p>\n<h3>When would I use this document?</h3>\n<p>The SAFE is used to set out the terms of a transaction where a company wishes to raise equity capital immediately and defer the issuance of shares to the investor until some later date. The investor typically receives the future shares when a priced investment round occurs or there is a liquidation event. A SAFE is not intended to be a debt instrument, it is an alternative to a convertible note that can be beneficial to both parties.</p>\n<h3>Who signs this Agreement?</h3>\n<p>This document is signed by the Company and the Investor(s).</p>\n<h3>More details about this document</h3>\n<p>A SAFE can vary in length from one to several pages depending on how many terms the parties wish to address.</p>\n<h3>What are the core elements of this document?</h3>\n<p>The core elements of this document are:</p>\n<ul>\n<li>Parties;</li>\n<li>Definition of the Investment;</li>\n<li>Valuation; Use of Proceeds;</li>\n<li>Closing Date; and</li>\n<li>Termination.</li>\n</ul>\n<h3>Additional elements could include:</h3>\n<ul>\n<li>Confidentiality;</li>\n<li>Due Diligence;</li>\n<li>Governing Law;</li>\n<li>Agreement to be Bound; and</li>\n<li>Representations, Warranties and Covenants.</li>\n</ul>\n<h3>Related Documents</h3>\n<p><strong>Letter of Intent</strong> - a document outlining the terms of a proposed investment</p>\n<p><strong>Subscription Agreement</strong> - an agreement for the purchase of shares between a person buying shares and the corporation issuing the shares</p>","frontmatter":{"title":"Overview of SAFE","date":"June 28, 2018","description":"This article discusses the core elements of a Simple Agreement for Future Equity","author":{"id":"cmcivor@cobaltcounsel.com","first":"Chris","last":"McIvor","bio":null,"image":null},"tags":["Shareholders Agreement","SAFE"]}}},"pageContext":{"slug":"/overview-of-safe/","previous":{"fields":{"slug":"/i-disagree-with-everything-my-co-founder-wants-to-do-how-do-i-save-my-business/"},"frontmatter":{"title":"I Disagree With Everything My Co-Founder Wants to Do - How Do I Save My Business?","tags":["cmcivor"],"author":{"id":"cmcivor@cobaltcounsel.com","first":"Chris","last":"McIvor"}}},"next":{"fields":{"slug":"/overview-of-founders-agreement/"},"frontmatter":{"title":"Overview of Founders' Agreement","tags":["Shareholders Agreement"],"author":{"id":"cmcivor@cobaltcounsel.com","first":"Chris","last":"McIvor"}}}}}}