Common Contracts
1 similar Convertible Note Agreement contracts
Convertible note agreement template australiaConvertible Note Agreement • May 7th, 2021
A Simple Agreement for Future Equity, or "SAFE" is a relatively new form of financial instrument. The seed funding platform "Y-Combinator" claims to have developed it in 2014 as a simple replacement for convertible notes and it has since been copied widely. It is variously defined in different sources, but is commonly held to have the following features: no maturity date, no interest rate, automatic conversion on any priced share issue, and a valuation cap - i.e. the maximum value to which the SAFE will convert. A key aspect of a SAFE is that it does not create or reflect any debt between the parties. In practice, a SAFE is an agreement that can be used between a company and an investor. The investor invests money in the company using a SAFE. In exchange for the money, the investor receives the right to purchase stock in a future equity round (when one occurs) subject to certain parameters set out in the SAFE. A SAFE may be used as a financial instrument by Venture Capital Limited Part
