Document background
The Convertible Agreement Regarding Equity (CARE) is primarily used by early-stage companies in the United States seeking to raise capital without establishing an immediate company valuation. This instrument, similar to a SAFE (Simple Agreement for Future Equity), provides investors with the right to convert their investment into equity shares during future financing rounds. The agreement is particularly useful for seed-stage funding where company valuation might be premature or challenging to determine. It includes essential terms such as conversion triggers, valuation caps, and discount rates, while complying with U.S. securities regulations.
