About This Document

This Simple Agreement for Future Equity (SAFE) is an early-stage investment contract where an Investor provides funds to a Company in exchange for the right to receive future equity, typically triggered by a financing round, liquidity event, or maturity date.
It helps startups raise capital quickly without immediately pricing the company or issuing stock.

Who Should Use This Template

• Startup founders seeking early-stage funding without setting a company valuation immediately

• Angel investors and venture funds investing in pre-seed or seed-stage startups

• Businesses wanting to streamline fundraising with minimal initial paperwork

• Entrepreneurs preparing for future equity rounds or acquisition events

What the Template Includes

• Definitions of critical terms (SAFE, Investor, Company, Valuation Cap, Discount Rate, Maturity Date)

• Investment terms:

  • Investment Amount provided upfront

  • Application of a Valuation Cap or Discount Rate during conversion to equity

• Pro Rata Rights for future financing rounds

• Multiple conversion mechanisms based on:

  • Equity Financing

  • Liquidity Event

  • Maturity Date

  • Dissolution Event

• Representations and warranties from both the Company and the Investor

• Events of Default and investor remedies

• Dispute resolution through negotiation, arbitration, and optional injunctive relief

• Governing law specified as Delaware law

• Full miscellaneous provisions regarding assignment, notices, execution, and entire agreement

• Editable Word format for easy customization

Instructions for Completing the Template

• Insert the specific Investment Amount provided by the Investor.

• Complete the Valuation Cap (maximum valuation for conversion) and the Discount Rate (percentage reduction relative to future investors).

• Set the Maturity Date — typically 18 to 24 months from signing.

• Specify notice periods for pro rata rights participation in future financings.

• Include the Company’s jurisdiction (defaulted to Delaware unless customized).

• Finalize all parties' details at the signature blocks (Investor and Company), ensuring authorized representatives sign and date.

• Attach a filled-in Annex (if needed) listing the SAFE specifics for easier investor summaries.

Important Reminder

This document is provided as a template to assist with standard startup funding arrangements via a SAFE.
It does not constitute legal advice. Always consult a qualified attorney to review and adapt this SAFE Agreement for your company's specific fundraising strategy, to comply with securities laws, and to align with your long-term capitalization goals.