Unlocking SAFEs: Simple Agreements for Future Equity
It seems like everyone’s using SAFE financings to raise seed capital for their startups these days. But, do you really know how they work?
Despite their name, SAFEs are not always as simple and safe as they might first appear. Especially when it comes to the equity ownership dilution that might result from your next equity round when the SAFEs convert into equity.
In this Legal INCubator webinar, we dig into how SAFE financings work, what their key terms are, and how you can analyze the conversion mechanics to forecast your future ownership dilution.
What you’ll learn about SAFEs:
- The key terms of SAFEs;
- Pros and cons of SAFEs for your startup;
- How to analyze the equity dilution and ownership consequences of SAFEs; and
- How to model your SAFE financing and conversion mechanics in Excel.
Why you should watch:
- You are planning to raise seed capital for your startup and you are considering SAFEs as a possible financing method;
- You have raised seed capital with SAFEs and you want a better understanding of how the conversion of the SAFEs will affect your next equity round and your resulting ownership percentage in your company; or
- You are a startup founder or an investor and you want to learn more about the pros and cons of SAFE financings.
If you fit one of the above profiles (or know someone who does), then this webinar definitely will be worth your time.
Also, remember that you first need a solid corporate structure before you start raising money from investors. SAFE financings are structured for corporations, and commonly available SAFE financing documents assume that your startup is a Delaware C-corporation. So, if you missed it, check out this recording of our recent webinar on How to Incorporate to Attract Investors.
Startup Attorney (Stanford JD/MBA)
Carlos works closely with startups and growing companies across a variety of technologies and industries, advising them on legal and business matters at early-stage startup, funding and sale. As a startup attorney, he has seen many business plans, approaches and decisions, many done well and many done wrong. Carlos takes a practical legal approach with his clients and is dedicated to making a tangible difference and positive impact on their businesses, knowing firsthand the challenges of not only launching a startup, but also managing a successful business and planning for the future.
Matt has a gift for finding thoughtful and creative solutions while structuring transformational deals and loves working on venture financings and M&A transactions. He also enjoys being in the trenches, advising and supporting clients on their most important matters.
Matt is a business lawyer and advisor focused on representing entrepreneurs, startups and established businesses. His practice consists of working with entrepreneurs from idea to exit, angel and venture capital financing transactions, mergers and acquisitions and acting as outside general counsel to startups and emerging growth companies.
Jamie has extensive experience assisting startups and growing companies with various business and corporate matters, including entity formation, debt and equity financings, mergers and acquisitions and corporate governance. Jamie also focuses on a wide range of corporate and commercial transactions, including strategic alliances and joint ventures, technology licensing and acquisitions, clinical research and life science transactions, as well as manufacturing, supply and distribution relationships.