(“Standard” version of a SAFE is Valuation Cap only) (3)允许分别定价(high resolution fundraising); 只要创始人和投资人达成一致就可交割,无需就某一单独交易同时与其他投资者相协商。 (4)可能享受税收优惠。 可转换股倾向于被归类为“合格的中小企业股票”(qualified small business stock),可能适用较低的...
Delaying the “valuation question” is a double-edged sword. While it offers speed and flexibility, it also risks causing problems further down the line. For example, founders may offer a valuation cap that is low to close a SAFE investment quickly without considering its actual impact upon ...
There are four main types of SAFE: (1) valuation cap, (2) discount, (3) valuation cap + discount, and (4) most favored nation (MFN). They are defined by how you calculate the amount of equity received by the SAFE holder(s) upon conversion. The SAFE holders’ investment amount is d...
Be prepared for potentially challenging negotiations in later rounds due to deferred valuation decisions. Be aware of how multiple SAFEs can dilute your equity. Regularly update and review your cap table, especially after each round of SAFE notes, to keep track of potential ownership changes. ...
The “Valuation Cap” of this SAFE is $(“valuation cap amount in dollars”). The “Valuation Cap” entitles the Investors to equity priced at the lower of the pre-money valuation or valuation cap. The valuation cap sets the maximum price that your convertible securities will convert into eq...
As mentioned, SAFE notes either come with or without a valuation cap. A“capped”investment round places a ceiling on the valuation once the notes are converted into equity, which gives investors an idea of how much of the company they’ll own. ...
A SAFE generally has a valuation cap, discount rate, or both, which could determine how much equity the investor receives during a conversion event. Need help with other finance or startup questions? Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and grow...
"SAFE Price": the price per share equal to the Valuation Cap divided by the Company Capitalization. "Standard Preferred Stock": the shares of a series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing. ...
That being said, SAFE notes often come with a valuation cap, which limits the maximum price at which the investment can convert into equity. Sometimes, they may come with a discount, which provides a percentage reduction off the share price during the next financing. What Is Equity Financing...
an acquisition, or an initial public offering (IPO). Conversions usually happen at a discount or valuation cap as anincentive to invest early.Suppose the triggering event does not occur before the maturity date. In that case, the investor can ask for a payout of the original investment or...