Connecticut Simple Agreement for Future Equity

State:
Multi-State
Control #:
US-ENTREP-008-3
Format:
Word; 
Rich Text
Instant download

Description

This term sheet summarizes the principal terms of the proposed Simple Agreement for Future Equity ("SAFE") financing of a Company, by certain Investors. This term sheet is for discussion purposes, is not binding on an Investor, nor is an Investor obligated to consummate the financing until a definitive SAFE agreement has been agreed to and executed. The term sheet does not constitute an offer to sell or an offer to purchase securities.
Free preview
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity
  • Preview Simple Agreement for Future Equity

How to fill out Simple Agreement For Future Equity?

Finding the right legal file web template might be a have difficulties. Of course, there are a variety of layouts available online, but how would you find the legal kind you need? Utilize the US Legal Forms web site. The services provides thousands of layouts, including the Connecticut Simple Agreement for Future Equity, that you can use for enterprise and private requires. All the kinds are inspected by pros and meet federal and state requirements.

Should you be presently listed, log in to the bank account and click on the Down load key to obtain the Connecticut Simple Agreement for Future Equity. Make use of your bank account to check from the legal kinds you have ordered earlier. Check out the My Forms tab of your bank account and have another duplicate of your file you need.

Should you be a fresh customer of US Legal Forms, here are simple recommendations that you should follow:

  • Initial, be sure you have selected the appropriate kind for the town/area. You can look through the shape while using Review key and read the shape description to ensure it will be the best for you.
  • In case the kind fails to meet your expectations, utilize the Seach field to obtain the right kind.
  • Once you are positive that the shape would work, select the Acquire now key to obtain the kind.
  • Select the prices program you would like and type in the needed information and facts. Create your bank account and pay money for an order utilizing your PayPal bank account or bank card.
  • Choose the submit structure and acquire the legal file web template to the system.
  • Comprehensive, revise and produce and signal the acquired Connecticut Simple Agreement for Future Equity.

US Legal Forms is the most significant collection of legal kinds in which you will find a variety of file layouts. Utilize the company to acquire skillfully-manufactured paperwork that follow status requirements.

Form popularity

FAQ

Cons: SAFE investors assume most, if not all, of the risk, in that there is no guarantee of any equity ownership in the company. ... A SAFE holder is not entitled to any company assets in the event of a liquidation.

What's Included in a Simple Agreement for Future Equity? The key terms of a SAFE include the investment amount, the valuation cap, and the conversion discount.

A Simple Agreement for Future Equity (SAFE) is a contractual agreement between a startup company and its investors. It exchanges the investor's investment for the right to preferred shares in the startup company when the company raises a future round of funding.

Cons: SAFE investors assume most, if not all, of the risk, in that there is no guarantee of any equity ownership in the company. ... A SAFE holder is not entitled to any company assets in the event of a liquidation.

A simple agreement for future equity delays valuation of a company until it has more performance data on which to base a valuation. At the same time, it promises an investor the right to buy future equity when a valuation is made. A SAFE can be converted into preferred stock in the future.

SAFEs are generally considered taxable at the time of the triggering event, when the SAFE converts into equity (i.e. stock in the company).

Calculation ing to the Discount Rate The total shares are calculated ing to the SAFE money invested divided by the share price in the next round, multiplied by the discount rate. If we take our example above, if during the next financing round, the company raises money ing to a share price of $10.

Trusted and secure by over 3 million people of the world’s leading companies

Connecticut Simple Agreement for Future Equity