SAFE (Simple Agreement for Future Equity) Note is a method by which startups and small businesses can raise money for their company while delaying the valuation process.
It is a legally binding agreement and is highly secure.
Mostly, SAFE notes have no interest rate or date of maturity. Safe notes can also help you in avoiding fundraising gridlocks. The enable you to close the funding rounds efficiently, provide better discount rates to investors and keep away premature valuations.
In this article we will be exploring 3 websites that offer SAFE note templates for free.
1. Lawpath
This is one of the largest online legal platforms that quickly provides technology powered legal services at any time on any device. Simply click on the link that we have provided below and sign up for a free account. Once you register, you must specify your business structure such as Sole trader, Company, Partnership etc. from a drop-down list, provide a few details about your business, such Name, Number of Employees, Industry as well as specify the main areas that your company will be focusing on in the next 1 year.
Next, after submitting all the relevant information about your business, you will be navigated to the Lawpath Dashboard which the principal area from where you can create any legal document. Now, click on Home, then click on ‘Create a legal document and in the section titled Favorites, click on ‘Create Document’ under SAFE.
Use the Questionnaire on the left side to fill all the relevant details in the agreement. Keep clicking on ‘Next‘ to provide all the required details and make sure you do not miss out anything. After you are through with this process, click on the button ‘Complete Document’ at the top right. Next add E-signatures wherever required through a re-usable document template. Alternatively, you can also setup the document for self-signing.
Finally, preview your document to check if all the details are precise and then you can either choose to download the document in PDF / DOCX format or share it with others using a web link (URL).
Click here to navigate to Lawpath.
2. YCombinator Safe Financing Documents
This is a company that helps founders get the best possible outcome through one-to-one support, fundraising guides, investor pitch training, templates and more. It is considered to be one of the best startup accelerators in the world and has been used to launch over 4000 companies including Coinbase, Airbnb, Dropbox, Quora and more.
Simply click on the link that we have given below to navigate to the SAFE templates for US as well as Non-US companies. There are 3 version that have been provided – Safe version: Valuation Cap, no Safe version: Discount, Discount, no Valuation Cap and Safe version: MFN, no Valuation Cap, no Discount.
Just click on the document to download it to your system in DOCX format. You can then edit / modify it as per your requirements.
Click here to download YCombinator SAFE documents.
3. Clara
Clara deciphers the complex legal processes that are involved in the startup, setting up, and growing a company using an innovative platform. Just click on the link that we have provided below and sign up for a free account with Clara.
Once you verify your account using your email, specify the name of your Startup and click choose ‘Generate Documents’ on the next screen. Next, provide the details of your Startup such as Primary Location & Website, Full legal name etc. and click on ‘Get Started’.
This takes you to the main page to generate your documents where you must choose ‘Simple Agreement for Future Equity’ and then click on ‘Use Document’. Next, type the Document name, specify the Companies and Investors, fill in all the required details and click on ‘Generate Document’. Once the SAFE document has been generated, you can download it to your system in the PDF format.
Click here to visit Clara to generate your SAFE Notes.
Closing Comments:
You can use any of the above websites for SAFE Nose Templates. Since it’s a legally binding agreement, it will be better if you spend some time with all the above tools and figure out which one best matches your requirements and needs.
