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.
It can be a good fit! If you're looking for fast funding and want to avoid complex terms and conditions, a SAFE might just be the right tool for your startup's growth.
Absolutely! Negotiating terms can lead to better outcomes for your investment. Just be prepared to talk it out and find a middle ground with the startup.
Be on the lookout for key terms like valuation caps and discounts. These can make a big difference in how much equity you get when it converts to stock later on.
While no investment is without risk, SAFEs can be a smart move for investors because they allow them to get in early on a company’s journey without having to value the company upfront.
The primary perks of a SAFE are simplicity and speed. It cuts out a lot of the legal red tape that can slow things down, making it easier for startups to get funding quickly.