SAFE: Simple Contract for Future Equity (Seed-Stage Startup)

This legal template pertains to the issuance of a SAFE (Simple Agreement for Future Equity) for a startup company in its seed-stage. A SAFE is essentially a contract between an investor and a startup, providing the investor the right to obtain equity at a later stage, typically during a subsequent financing round or a specific liquidity event.

The template outlines the terms and conditions governing this agreement, including the amount of investment, the valuation cap (the maximum pre-money valuation at which the SAFE will convert into equity), the discount rate (percentage discount applied to the next financing round's valuation), and any other specific provisions as per the parties' agreement.

Additionally, the template may cover details related to the timeline of conversion, information rights, anti-dilution measures, and other clauses typically found in SAFE agreements. It aims to facilitate a straightforward and standardized method of raising funds for seed-stage startups, providing both parties with a clear understanding of the terms involved.

It is important to note that this template, while providing a solid foundation, should be reviewed and potentially modified by legal professionals to align with the specific needs of the startup and investor, ensuring compliance with applicable laws and regulations.