Simple Agreement For Future Equity On Balance Sheet

Some of the applicable assets are: SAFEs are considered securities such as convertible stocks and bonds, and are therefore regulated by the SEC under the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC and others have warned inexperienced investors that they are wary of SAFEs because they are not identical to common shares and the investor does not benefit in return from a stake in shares. In addition, the SEC is concerned that the name « SAFE » is a misleading fake name for the inexperienced investor. The risk-return profile of SAFE investments is that of venture capital equity in an early-stage start-up and not debt (which implies the promise of a certain payment within a set period of time). Both parties are encouraged to have the safe checked by their lawyers if they wish, but we believe it offers a starting point that can be used in most situations without change.. . . .

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