SeedSAFT is the SeedLegals automated version of a SAFT (Simple Agreement for Future Tokens). With it, the purchaser pre-pays for tokens that haven’t been released yet and the company uses that money to develop the tokens. A SAFT broadly follows the same principles as a SAFE (Simple Agreement for Future Equity) or, our SAFE equivalent, a SeedFAST . With a SAFE, the investor converts their cash investment into equity at a fixed point in the future. With a SAFT, the purchaser receives tokens instead of equity. SeedSAFT does not set out the total number of tokens that the purchaser receives. That number depends on three factors: the price paid for the SeedSAFT, the token’s price at the public launch, and any discount the purchaser is promised in the SeedSAFT terms.

When can I use SeedSAFT?

SeedSAFT helps you lock in funds before you have fully developed your token, but to use it you need to have many of the details in place. SeedSAFT is designed for companies who already have a clear idea about how their tokens will work, including the market price and the wider tokenomics. To create a SeedSAFT, first you’ll need: your whitepaper detailing the token’s specifications. This isn’t legally binding, but it’s expected that you stick as closely as possible to the plan you set out here. A whitepaper usually includes: the tokenomics your token distribution plan (including prices and stages of distribution) how you will issue and transfer tokens to the purchaser an estimate of when you plan to launch the token If you don’t have all of the above already in place, then a more traditional fundraising method (like a SeedFAST ) paired with a Token Warrant might be a better solution for you.

Does the purchaser get equity?

No. The SeedSAFT only promises tokens, not equity. If you want to give an investor equity as well as tokens, you can combine a more traditional fundraising solution (like SeedFAST ) with a Token Warrant, which is coming soon on SeedLegals. Get in touch to learn more.

Are SeedSAFTs SEIS/EIS compliant?

No. Investors can’t claim SEIS/EIS tax relief on SeedSAFT purchases.

Do I need a whitepaper?

Ideally you should have a whitepaper that you link to in your SeedSAFT. A whitepaper is your opportunity to describe the token and its specifications (for example, what it entitles the holder to do). The whitepaper functions like a pitch deck in a traditional, equity-based funding round. It’s part of how you convince purchasers that your token is worth their investment. Without knowing anything about your token, purchasers are unlikely to get onboard. So while we don’t require you to include a whitepaper, we do highly recommend it. You can provide a description of your tokens in the SeedSAFT, if your whitepaper is not available.

Why does SeedSAFT give you the option to offer a refund?

This is to help protect your purchaser’s interests. SeedSAFT gives you the option to refund your purchasers in three circumstances: if you don’t meet a funding target by your deadline and therefore can’t develop the token at all if you don’t issue the tokens by the longstop date if your company goes into liquidation

Can I use SeedSAFT if we have already minted our tokens?

SeedSAFT is designed for tokens that are still in development, and therefore contains mechanisms and safeguards that aren’t suitable for tokens already in circulation. If you have already developed and/or released your tokens, you’ll need a Token Purchase Agreement instead. We’re currently working on this agreement, which you’ll be able to use when your tokens are either on the cusp of being issued or are already in circulation. It’s coming soon - stay tuned! Or get in touch to learn more.

Can SeedLegals give me advice on structuring my tokens?

No. Our goal is to make the legal documents you need to raise investment to develop your tokens faster, clearer and easier. While we can give you commercial guidance about the documents, we can’t advise you on structuring your tokens. This is particularly important in the context of where you decide to issue your tokens; certain markets have already regulated the issue of tokens, while in other jurisdictions regulation is developing at a slower pace. Please seek legal advice.

Do I need separate tax advice before issuing my tokens?

Yes. SeedLegals does not provide legal or tax advice. The issue of tokens can have adverse tax consequences in the UK and in other jurisdictions. Our strong recommendation is that you seek expert advice prior to raising your funds and before issuing your tokens.

Can I raise funds from investors based in the US?

While we can’t give legal advice on this point, we strongly discourage you from raising funds from US-based investors. This can have adverse tax and regulatory implications for both the company issuing the tokens and your investors. Please take legal advice on this point.

Raise Raise with Tokens

Advisory

SAFT - Simple Agreement for Future Tokens

Raise funds now, mint tokens later

Accelerate the development of your crypto tokens with SeedSAFT. Get the resources you need to develop your tokens by raising money from purchasers first and issuing tokens later when they’re ready.

Talk to our team

Get started

Introducing SeedSAFT

Fund your token development

With SeedSAFT, purchasers pre-pay for tokens so you can raise the money you need for development.

Set key terms

We walk you through the SeedSAFT key terms with detailed explanations so it’s quick to build and customise the agreement.

Attach your whitepaper

Add a link to a whitepaper where you describe the token’s attributes and explain the tokenomics.

Protect your purchasers

SeedSAFT gives you the option to refund your purchasers if you don’t ultimately issue the tokens.

Receive funds in crypto or fiat

Decide whether your purchaser will pay in fiat, cryptocurrency, stablecoin or another token.

Get market-standard docs

We instantly build all the other deal docs you might need, including the investor consent notice, board resolution and shareholders resolution.

Create and sign online

Keep all your documents safe with secure storage, and save time by creating, sharing and signing documents on SeedLegals.

Get unlimited support

Need any help with the documents? Our team is always on-hand to provide support.

£1.3B

raised on SeedLegals
35,000

founders
25,000

investors
5-star

reviews on Google and Trustpilot

No fuss SAFT agreement template

Easy to create, negotiate and sign online

Say hello to the new market standard - SeedSAFT is the first automated agreement for raising ahead of a token launch. Just fill in the details on our simple workflow and you’re ready to raise.

Share a link to your whitepaper or add a description of your token
Generate all the docs you need - board and shareholders resolutions, investor consent
Suitable for companies looking to raise via tokens in the UK

Design your token, raise before release

Is SeedSAFT right for your company?

SeedSAFT could be the right fundraising mechanism for you if you have:

A clear idea of your token’s attributes and tokenomics
A timeframe for development and issuance
Purchasers who understand the risks
Confidence in your experience and knowledge of blockchain-based tokens

How to raise with SeedSAFT

Publish your whitepaper
Secure commitments from purchasers
Speak with our team to see if SeedSAFT is the right fundraising method for you
Create your SeedSAFT agreement
Enter your deal terms
Generate your automated SeedSAFT docs
Receive funds from your purchasers
Generate your automated SeedSAFT docs
Use the proceeds to develop the network and your tokens
Launch your network and tokens

Not ready for SeedSAFT?

Token Warrant (coming soon!)

Still planning what your future tokens will do? We’re hard at work on a token agreement to use alongside more traditional fundraising solutions (like SeedFAST). Our Token Warrant will give warrant-holders the right to purchase any tokens that you might issue in the future. Stay tuned.

Be the first to find out

Tokens ready to go?

Token Purchase Agreement (coming soon!)

If you’re just about to issue your tokens or they’re already in circulation, then you’ll need a Token Purchase Agreement instead of a SeedSAFT. Watch this space - we’ve got one in the pipeline too.

Be the first to find out

Get support during your token raise

Speak with the SeedLegals team

Not sure if a SeedSAFT is right for your company? Stuck on which deal terms to choose? Want to know more about our Token Warrant or Token Purchase Agreement? We’re here to help.

Get in touch

More resources on fundraising

SeedSAFT raise funds now, issue tokens later

SeedSAFT: you can do a token raise on SeedLegals

Agile fundraising: don’t do a funding round until you’ve read this.

Venture capital: what it is and how it works

FAQs - SeedSAFT

Frequently asked questions about SeedSAFT

What is SeedSAFT?

SeedSAFT is the SeedLegals automated version of a SAFT (Simple Agreement for Future Tokens). With it, the purchaser pre-pays for tokens that haven’t been released yet and the company uses that money to develop the tokens.

A SAFT broadly follows the same principles as a SAFE (Simple Agreement for Future Equity) or, our SAFE equivalent, a SeedFAST. With a SAFE, the investor converts their cash investment into equity at a fixed point in the future. With a SAFT, the purchaser receives tokens instead of equity.

SeedSAFT does not set out the total number of tokens that the purchaser receives. That number depends on three factors: the price paid for the SeedSAFT, the token’s price at the public launch, and any discount the purchaser is promised in the SeedSAFT terms.
When can I use SeedSAFT?
SeedSAFT helps you lock in funds before you have fully developed your token, but to use it you need to have many of the details in place. SeedSAFT is designed for companies who already have a clear idea about how their tokens will work, including the market price and the wider tokenomics.

To create a SeedSAFT, first you’ll need:
- your whitepaper detailing the token’s specifications. This isn’t legally binding, but it’s expected that you stick as closely as possible to the plan you set out here. A whitepaper usually includes:
  - the tokenomics
  - your token distribution plan (including prices and stages of distribution)
  - how you will issue and transfer tokens to the purchaser
- an estimate of when you plan to launch the token
If you don’t have all of the above already in place, then a more traditional fundraising method (like a SeedFAST) paired with a Token Warrant might be a better solution for you.
Does the purchaser get equity?

No. The SeedSAFT only promises tokens, not equity. If you want to give an investor equity as well as tokens, you can combine a more traditional fundraising solution (like SeedFAST) with a Token Warrant, which is coming soon on SeedLegals. Get in touch to learn more.
Are SeedSAFTs SEIS/EIS compliant?

No. Investors can’t claim SEIS/EIS tax relief on SeedSAFT purchases.
Do I need a whitepaper?

Ideally you should have a whitepaper that you link to in your SeedSAFT. A whitepaper is your opportunity to describe the token and its specifications (for example, what it entitles the holder to do). The whitepaper functions like a pitch deck in a traditional, equity-based funding round. It’s part of how you convince purchasers that your token is worth their investment.

Without knowing anything about your token, purchasers are unlikely to get onboard. So while we don’t require you to include a whitepaper, we do highly recommend it.

You can provide a description of your tokens in the SeedSAFT, if your whitepaper is not available.
Why does SeedSAFT give you the option to offer a refund?
This is to help protect your purchaser’s interests. SeedSAFT gives you the option to refund your purchasers in three circumstances:
- if you don’t meet a funding target by your deadline and therefore can’t develop the token at all
- if you don’t issue the tokens by the longstop date
- if your company goes into liquidation
Can I use SeedSAFT if we have already minted our tokens?

SeedSAFT is designed for tokens that are still in development, and therefore contains mechanisms and safeguards that aren’t suitable for tokens already in circulation.

If you have already developed and/or released your tokens, you’ll need a Token Purchase Agreement instead. We’re currently working on this agreement, which you’ll be able to use when your tokens are either on the cusp of being issued or are already in circulation. It’s coming soon - stay tuned! Or get in touch to learn more.
Can SeedLegals give me advice on structuring my tokens?

No. Our goal is to make the legal documents you need to raise investment to develop your tokens faster, clearer and easier. While we can give you commercial guidance about the documents, we can’t advise you on structuring your tokens.

This is particularly important in the context of where you decide to issue your tokens; certain markets have already regulated the issue of tokens, while in other jurisdictions regulation is developing at a slower pace. Please seek legal advice.
Do I need separate tax advice before issuing my tokens?

Yes. SeedLegals does not provide legal or tax advice. The issue of tokens can have adverse tax consequences in the UK and in other jurisdictions. Our strong recommendation is that you seek expert advice prior to raising your funds and before issuing your tokens.
Can I raise funds from investors based in the US?

While we can’t give legal advice on this point, we strongly discourage you from raising funds from US-based investors. This can have adverse tax and regulatory implications for both the company issuing the tokens and your investors. Please take legal advice on this point.

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