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Simple Agreement For Equity
"I need a Simple Agreement For Equity (SAFE) for my Singapore-based fintech startup to secure a $500,000 investment from an angel investor, with a valuation cap of $5 million and including pro-rata rights for future rounds."
1. Parties: Identification of the company and investor
2. Background: Context of the investment and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including Company Capitalization, Conversion Price, Discount Price, Valuation Cap
4. Investment Amount: Specification of the investment sum and payment terms
5. Equity Rights: Terms of conversion into equity, including conversion mechanics and triggers
6. Valuation Cap: Maximum valuation for conversion purposes and calculation methodology
7. Company Representations: Standard company warranties and representations
8. Investor Representations: Standard investor warranties and representations
9. Governing Law: Specification of Singapore law as governing law and jurisdiction
1. Most Favored Nation: Provision ensuring investor gets best terms offered to future investors
2. Pro-rata Rights: Rights allowing investor to participate in future funding rounds to maintain ownership percentage
3. Board Seat Rights: Provisions regarding investor rights to board representation or observer status
4. Information Rights: Rights to receive periodic financial and operational information
5. Transfer Restrictions: Limitations on the transfer of SAFE or resulting shares
1. Schedule 1 - Cap Table: Current shareholding structure of the company
2. Schedule 2 - Disclosure Schedule: Material information about the company's business, assets, and liabilities
3. Schedule 3 - Form of Conversion Notice: Template document for exercising conversion rights
4. Schedule 4 - Calculation of Conversion Price: Detailed methodology for calculating the conversion price under different scenarios
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