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Safe Investment Agreement
"I need a Safe Investment Agreement under Swiss law for a CHF 500,000 investment in our fintech startup, with a valuation cap of CHF 5 million and including pro-rata rights for the investor who will be a strategic partner."
1. Parties: Identification of the Company and the Investor with full legal details
2. Background: Context of the investment and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including 'Equity Financing', 'Liquidity Event', 'Dissolution Event', and 'Conversion Price'
4. Investment Amount: Specification of the investment sum and payment terms
5. Company Representations: Company's warranties regarding its legal status, authority, and compliance with Swiss law
6. Investor Representations: Investor's warranties regarding investment capacity and compliance with applicable laws
7. Conversion Rights: Terms and conditions for converting the investment into equity
8. Conversion Trigger Events: Specific events that trigger conversion rights (equity financing, liquidity event, etc.)
9. Dissolution Rights: Investor rights in case of company dissolution or liquidation
10. Information Rights: Company's obligations to provide financial and other information to the investor
11. Assignment and Transfer: Terms governing the transfer of rights under the agreement
12. Governing Law and Jurisdiction: Specification of Swiss law application and jurisdiction
13. Notices: Communication requirements and contact details
14. General Provisions: Standard contract clauses including amendments, severability, and entire agreement
1. Most Favored Nation: Optional provision ensuring investor receives best terms offered to other SAFE holders - recommended for sophisticated investors
2. Pro-rata Rights: Optional right to participate in future financing rounds - typically included for strategic investors
3. Board Observer Rights: Optional right to appoint a non-voting board observer - useful for larger investments
4. Tag-Along Rights: Optional provision allowing investor to join in sale of shares by founders - recommended for larger investments
5. Currency Conversion: Required if investment is made in non-Swiss franc currency
6. Tax Provisions: Special tax considerations if investor is non-Swiss or if specific tax structures are needed
7. Confidentiality: Detailed confidentiality provisions if not covered sufficiently in general provisions
1. Schedule 1 - Cap Table: Current capitalization table of the company
2. Schedule 2 - Calculation Methods: Detailed methods for calculating conversion price and equity allocation
3. Schedule 3 - Form of Conversion Notice: Template for conversion notice when trigger events occur
4. Schedule 4 - Company Information: Key company details including registration information and current directors
5. Appendix A - Investment Terms Summary: Summary of key investment terms and valuation metrics
6. Appendix B - Required Corporate Approvals: List of corporate approvals obtained for the SAFE issuance
Authors
Technology
Fintech
Biotechnology
Healthcare
Clean Energy
Software Development
E-commerce
Digital Services
Medical Technology
Artificial Intelligence
Blockchain
Internet of Things
Sustainable Technologies
Consumer Applications
Enterprise Software
Legal
Finance
Corporate Development
Executive Leadership
Investment
Compliance
Business Development
Corporate Secretary Office
Treasury
Risk Management
Chief Executive Officer
Chief Financial Officer
Investment Manager
Legal Counsel
Corporate Lawyer
Venture Capital Partner
Investment Director
Startup Founder
Managing Partner
General Counsel
Investment Analyst
Business Development Director
Finance Director
Company Secretary
Compliance Officer
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