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A Simple Agreement for Future Equity (SAFE) lets early-stage startups raise funds quickly without setting a company valuation right away. Irish investors provide capital now in exchange for the right to get shares later, typically when the company raises its next funding round or hits specific milestones.

Unlike traditional convertible notes, SAFEs don't have maturity dates or accrue interest. They've become popular with Irish tech startups because they're simpler than standard investment agreements and don't create immediate debt on the company's books. The investor's SAFE converts to equity at a pre-agreed discount rate or valuation cap when a qualifying event occurs.

Use a Simple Agreement for Future Equity when your Irish startup needs quick access to capital but isn't ready to set a firm valuation. This works especially well for early-stage companies raising smaller amounts from multiple investors, particularly when traditional equity rounds would be too expensive or time-consuming.

SAFEs make the most sense during pre-seed and seed funding stages, when your company's value is still hard to determine. They're particularly valuable when dealing with angel investors who understand startup dynamics and are comfortable with delayed equity conversion. Just ensure your company's constitution allows for these instruments under Irish company law.

• Valuation Cap SAFE: Sets a maximum price for converting investment to equity, protecting investors if the company value soars
• Discount SAFE: Offers a percentage discount on the next funding round's share price, typically 10-30% off
• Most Favoured Nation (MFN) SAFE: Automatically gives investors the best terms offered to other SAFE holders
• Post-Money SAFE: Calculates ownership based on the company's value after investment, providing clearer terms
• Hybrid SAFE: Combines both valuation cap and discount features, common in Irish tech startups

• Early-stage Startups: Companies seeking quick capital without complex equity negotiations or immediate valuation discussions
• Angel Investors: Individual investors providing early funding, often more flexible than institutional investors about terms
• Corporate Lawyers: Draft and review SAFE agreements to ensure compliance with Irish company law and protect client interests
• Company Directors: Authorize and sign SAFEs on behalf of the startup, managing shareholder interests
• Financial Advisors: Guide both startups and investors on SAFE terms, valuations, and conversion mechanics

• Company Details: Gather your company registration number, director details, and confirmation that your constitution permits SAFEs
• Investment Terms: Decide on valuation cap, discount rate, or both, plus any specific conversion triggers
• Investor Information: Collect full legal names, addresses, and investment amounts for each participating investor
• Future Round Planning: Define qualifying funding events that will trigger conversion to equity
• Board Approval: Secure formal board resolution authorizing the SAFE issuance under Irish company law
• Document Generation: Use our platform to create a legally-sound SAFE agreement tailored to Irish requirements

• Party Details: Full legal names and addresses of the company and investor, plus company registration number
• Investment Terms: Purchase amount, valuation cap and/or discount rate clearly stated
• Conversion Rights: Detailed triggers for equity conversion, including qualifying funding rounds
• Share Class: Specific class of shares to be issued upon conversion
• Pro-rata Rights: Investor's rights in future funding rounds
• Irish Law Clause: Explicit statement that Irish law governs the agreement
• Dissolution Rights: Treatment of the investment if the company dissolves
• Amendment Terms: Conditions for modifying the agreement with investor consent

A Simple Agreement for Future Equity (SAFE) differs significantly from a standard Equity Agreement in several key ways. While both involve company ownership, they serve distinct purposes in Irish business law.

• Timing of Ownership: SAFEs promise future equity without immediate shareholding, while Equity Agreements transfer ownership rights immediately
• Valuation Requirements: SAFEs don't need a current company valuation, making them ideal for early-stage startups, whereas Equity Agreements require agreed-upon valuations
• Documentation Complexity: SAFEs typically use simpler documentation and fewer formalities than full Equity Agreements, which need detailed shareholder rights and obligations
• Cost and Speed: SAFEs can be executed quickly with lower legal costs, while Equity Agreements often require extensive negotiation and due diligence
• Investor Rights: SAFEs holders have limited rights until conversion, unlike immediate voting and dividend rights in Equity Agreements