What is a Simple Agreement for Future Equity (SAFE)?
A SAFE is a legal document made with an investor where they provide funding, in return for shares in your startup in the future, to be issued at the time of your startup’s first equity funding round.
Why generate this document?
Like a Convertible Loan Note, a SAFE is shorter and simpler than the types of documentation used in later, larger investment rounds. The key terms of a SAFE are well understood in the market, so there should be minimal negotiation from investors, saving both time and money.
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How to generate your Simple Agreement for Future Equity (SAFE)
01
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Login
Login into your account (or sign-up, if you don’t have one).
02
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Generate Simple Agreement for Future Equity (SAFE)
Go to the Generate Documents tab, choose International or Y Combinator from the dropdown and select Simple Agreement for Future Equity.
03
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Complete the form
Complete each field in the form and select your various options.
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Sign with DocuSign
Once you generate the document, you can save it in draft, edit it, and when final, send it for signature through our built-in DocuSign integration.
Create legal documents, collect signatures and safeguard them in our smart data room.
A SAFE (which stands for Simple Agreement for Future Equity) is the most popular type of convertible for early-stage startups. It was originally created by Y Combinator in 2013.
Raising money for a start-up can take many different forms. One way is to use convertible instruments such as convertible notes, SAFEs and KISSs. When using a convertible, the start-up receives the investment but does not issue shares at that stage. The agreement can ‘convert’ into shares in the future.
Education
Feb 10 · 6-minute read
Binance uses Clara to incorporate and manage ADGM entities. The team at Clara are extremely efficient and go the extra mile to ensure we always have a smooth experience and meet our deadlines. Top-notch service!
Vishal Sacheendran
Head of Strategy and Operations, Binance
Starting a company is hard enough, but managing legal processes shouldn’t be. With Clara’s dedicated accelerator onboarding solution, companies can get the support and infrastructure they need to efficiently and professionally complete their legal due diligence and finalize an investment.
Amal Dokhan
General Partner MENA, 500 Global
Clara is a one-stop shop for everything equity related. All our data is safe and securely stored and accurately recorded. And our investors love having direct access. It has saved us countless hours and kept our cap table mistake free.
Jessica Anuna
CEO & Founder, Klasha
We spend a lot of time educating founders on basic legal concepts: what they need to do for us to invest in them. Clara automates these functions. As Clara’s first institutional investor, we knew intuitively from inception, this company will be a game changer.
Vijay Tirathrai
Managing Director, Techstars
You can’t beat Clara’s ESOP functionality. It allows us to grant options to our team in a few clicks while automatically updating our cap table. Truly next level.
Michael Hunter
Co-Founder & CEO, Holo
Founders often struggle with managing their legal function due to lack of expertise and resources. And we’ve seen poor legal structures create hurdles to our investing in otherwise healthy startups. Investors like ourselves love that Clara gives founders the tools they need to establish, grow and scale their startups from day one on a best-practice basis.
Shane Shin
Founding Partner, Shorooq
US cap table solutions aren’t tailored to the differentiated needs of international startups. Clara is the only cap table provider we found that had emerging market startups in mind. Add to that all the other things you can do on the Clara platform, from building your ESOP to data room management, and switching was a no brainer.
Omar Rifai
Co-founder, GrubTech
From company formation to maintaining the cap-table, by using Clara founders can digitally form their companies in a range of jurisdictions, create and manage their cap-tables and generate legal documents. Clara is quickly becoming an integral part of the startup software stack.
Daniel Dos Reis
Investment Director, Wamda Capital
Clara is a must-have for founders. Not only does it provide all the legal tools you need in a single platform, using Clara also signals to investors that you are a serious startup.
Mazen AlDarrab
Founder & CGO, Zid
IP Assignments, what? I didn’t even know they existed before Clara. For startups, setting up governance, corporate structures, data rooms and fundraising are all hard to get right. Clara’s legalOS is premium. It pays for itself.
Zohare Haider
Co-Founder & CEO, Jalebi
Binance uses Clara to incorporate and manage ADGM entities. The team at Clara are extremely efficient and go the extra mile to ensure we always have a smooth experience and meet our deadlines. Top-notch service!
Vishal Sacheendran
Head of Strategy and Operations, Binance
Starting a company is hard enough, but managing legal processes shouldn’t be. With Clara’s dedicated accelerator onboarding solution, companies can get the support and infrastructure they need to efficiently and professionally complete their legal due diligence and finalize an investment.
Amal Dokhan
General Partner MENA, 500 Global
Clara is a one-stop shop for everything equity related. All our data is safe and securely stored and accurately recorded. And our investors love having direct access. It has saved us countless hours and kept our cap table mistake free.
Jessica Anuna
CEO & Founder, Klasha
We spend a lot of time educating founders on basic legal concepts: what they need to do for us to invest in them. Clara automates these functions. As Clara’s first institutional investor, we knew intuitively from inception, this company will be a game changer.
Vijay Tirathrai
Managing Director, Techstars
You can’t beat Clara’s ESOP functionality. It allows us to grant options to our team in a few clicks while automatically updating our cap table. Truly next level.
Michael Hunter
Co-Founder & CEO, Holo
Founders often struggle with managing their legal function due to lack of expertise and resources. And we’ve seen poor legal structures create hurdles to our investing in otherwise healthy startups. Investors like ourselves love that Clara gives founders the tools they need to establish, grow and scale their startups from day one on a best-practice basis.
Shane Shin
Founding Partner, Shorooq
US cap table solutions aren’t tailored to the differentiated needs of international startups. Clara is the only cap table provider we found that had emerging market startups in mind. Add to that all the other things you can do on the Clara platform, from building your ESOP to data room management, and switching was a no brainer.
Omar Rifai
Co-founder, GrubTech
From company formation to maintaining the cap-table, by using Clara founders can digitally form their companies in a range of jurisdictions, create and manage their cap-tables and generate legal documents. Clara is quickly becoming an integral part of the startup software stack.
Daniel Dos Reis
Investment Director, Wamda Capital
Clara is a must-have for founders. Not only does it provide all the legal tools you need in a single platform, using Clara also signals to investors that you are a serious startup.
Mazen AlDarrab
Founder & CGO, Zid
IP Assignments, what? I didn’t even know they existed before Clara. For startups, setting up governance, corporate structures, data rooms and fundraising are all hard to get right. Clara’s legalOS is premium. It pays for itself.
Zohare Haider
Co-Founder & CEO, Jalebi
Binance uses Clara to incorporate and manage ADGM entities. The team at Clara are extremely efficient and go the extra mile to ensure we always have a smooth experience and meet our deadlines. Top-notch service!
Vishal Sacheendran
Head of Strategy and Operations, Binance
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