What is a Simple Agreement for Future Equity (SAFE)?

A Simple Agreement for Future Equity (SAFE) is a type of advanced subscription agreement. Advanced subscription agreements are used by startups to raise equity investment from investors, typically before a funding round, but can also be used as a bridge to a future funding round. SAFEs allow you to raise capital without a valuation in exchange for the right for your investors to receive equity at a later date - whether that is at a predetermined date, or atf a future event such as the company raising a certain amount of funding or achieving a certain milestone. A popular example of a SAFE is the Y Combinator (YC) SAFE, which is a widely used template by startups in the US and across Asia-Pacific for raising equity investment.

SeedSAFE is the SeedLegals name for all our SAFEs. With SeedSAFE, you can either raise using the terms and features of the standard YC SAFE, or choose enhanced features including: - Add a longstop date and fixed valuation, - GIve investors a discount - Set a valuation cap - Define a minimum investment amount - Specify the share class for new investors - Add provisions for investors rights Or, you can create a SeedFAST (the UK standard).

SeedFAST is an advanced subscription agreement that SeedLegals developed for the UK. SeedFAST is now the market-standard document for startups looking to raise early-stage capital in the UK. SeedFASTs are individual, super simple, quick agreements for future equity in the company where investors pre-pay for shares that will be allocated to them in the next funding round. SeedFASTs can be customised to suit the investment/ You can include a longstop date, valuation cap, discount rate, minimum investment amount, share class for the shares you’ll issue to the investor in future, and investor rights including investor majority right, board observer right and Most Favoured Nation (MFN) clause.

What is the difference between a SAFE and a CLN?

CLNs sometimes get confused with SAFEs as they are both agreements you make with investors that help you raise money before a funding round. The main difference between SAFEs and CLNs is that convertible notes are debt-equity (also known as quasi-equity) instruments while SAFEs are equity agreements. The convertible debt can be repaid in certain scenarios, and it can carry interest, while a SAFE (such as a SeedSAFE or a SeedFAST) is not repayable at all.

When should I use a SeedSAFE?

SeedSAFEs should be used before a funding round, or as a bridge to a later funding round (that will usually take place within a year), when you want to quickly take in a small amount of investment and you don’t want to commit to a valuation. SeedSAFEs are a flexible and attractive option if you want to quickly take an investment when traditional funding methods aren’t available or practical.

When do I need to issue equity to my investor?

It depends on what terms you choose for your agreement. Your SeedSAFE and SeedNOTE convert to equity either: - at the next funding round, or - when you raise above a preset qualifying amount, or - at the longstop or maturity date This is the date at which the agreement automatically converts if you don’t raise any more funds.

I have operations in the UK, can SeedLegals help?

Yes, absolutely. We offer a range of services in the UK and it can be more efficient to streamline your international operations through SeedLegals. Ask us for more information.

I have a UK investor and they’re asking me about SEIS/EIS relief...?

In the UK, the Enterprise Investment Schemes - SEIS and EIS - give generous tax breaks to investors in startups and scale-ups. If an investment in your company qualifies for SEIS or EIS, it can make you much more attractive to UK investors. . Our SeedFAST agreements aren’t classed as debt so they are SEIS and EIS compliant, as long as you include a longstop date no more than six months from when your investor gives you the funds (so the agreement converts to equity within the six months). SeedNOTEs aren’t compatible with SEIS or EIS because they’re classed as debt.

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Take investment without needing to determine your valuation today. Our flexible simple agreements for future equity (SAFEs) allow you to raise quickly and with terms to suit your fundraising.

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Simple agreements for future equity (SAFE)

Fast and flexible fundraising

Not ready to do a funding round? Take investment now without a company valuation. Our flexible simple agreements for future equity (SAFEs) allow you to raise quickly, with terms to suit your company.

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Standard YC SAFE
Enhanced version of YC SAFE
SeedFAST, the UK standard for simple equity investments

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We’ve made simple agreements for future equity… simple. Stay in control of the terms and clauses, while we automatically generate your documents.

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Convert at your next funding round - no extra cost

SeedSAFE, the quick and easy way to take investment

Choose your SAFE

Create a standard YC SAFE, an enhanced version of the YC SAFE s or a SeedFAST, the UK standard

Decide your terms

Use a standard YC SAFE or add a longstop date, fixed valuation or more

Allow for pre-paid shares

Take investment now, allocate shares to investors in your next funding round

Decide company valuation later

Delay valuation until your round, give your company more time to grow

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Don’t wait to do a round - raise smaller amounts of capital as and when it’s available

Create, negotiate and sign

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How it works

Choose your SeedSAFE

Choose from standard YC SAFE, enhanced YC SAFE or SeedFAST, the UK standard
Create your agreement

Follow the simple workflow to decide on the terms of the investment
Get all your docs in minutes

SeedLegals generates all key documents for the investment, ready to share and sign online
Receive your funds

After your investor signs, they transfers the money directly to you
Convert to shares

Later, convert the investment into shares (included in our service) - your cap table is automatically updated
Ask us if you need help

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Other ways to raise before a round

Looking for a convertible loan note?

Investor asking for a convertible loan note? No problem. Use SeedNOTE, our fully configurable convertible loan note which offers additional features, including repayment of investment capital and interest.

Find out more about SeedNOTE

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SeedSAFE

Agile fundraise before, between or after a round with our simple agreements for future equity. Pricing starts at S$200 and is capped at S$4,990, and includes free conversion into shares later.

From S$200

How much will my SeedSAFE cost me?

What's included?

SeedSAFE Advanced Subscription Agreement
Investor Consent Notice
Board & Shareholders Resolutions
Free conversion into shares later
Automatically updated cap table
Step-by-step wizard, hint text and tutorials
Share and sign everything on SeedLegals
Unlimited hours of support from our team

How it works

1
Subscribe to SeedLegals and create your company account
2
Create your SeedSAFE
3
Enter your investment details
4
Invite your investors to review and sign on SeedLegals
5
Your investors transfer you the funds directly

You'll need a SeedLegals subscription (S$69/month or S$699/year)

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FAQs - SeedSAFE

Frequently asked questions about SeedSAFE

What is a Simple Agreement for Future Equity (SAFE)?

A Simple Agreement for Future Equity (SAFE) is a type of advanced subscription agreement. Advanced subscription agreements are used by startups to raise equity investment from investors, typically before a funding round, but can also be used as a bridge to a future funding round.
SAFEs allow you to raise capital without a valuation in exchange for the right for your investors to receive equity at a later date - whether that is at a predetermined date, or atf a future event such as the company raising a certain amount of funding or achieving a certain milestone.
A popular example of a SAFE is the Y Combinator (YC) SAFE, which is a widely used template by startups in the US and across Asia-Pacific for raising equity investment.
What is SeedSAFE?

SeedSAFE is the SeedLegals name for all our SAFEs. With SeedSAFE, you can either raise using the terms and features of the standard YC SAFE, or choose enhanced features including:
- Add a longstop date and fixed valuation,
- GIve investors a discount
- Set a valuation cap
- Define a minimum investment amount
- Specify the share class for new investors
- Add provisions for investors rights

Or, you can create a SeedFAST (the UK standard).
What is SeedFAST?

SeedFAST is an advanced subscription agreement that SeedLegals developed for the UK.
SeedFAST is now the market-standard document for startups looking to raise early-stage capital in the UK.
SeedFASTs are individual, super simple, quick agreements for future equity in the company where investors pre-pay for shares that will be allocated to them in the next funding round.
SeedFASTs can be customised to suit the investment/ You can include a longstop date, valuation cap, discount rate, minimum investment amount, share class for the shares you’ll issue to the investor in future, and investor rights including investor majority right, board observer right and Most Favoured Nation (MFN) clause.
What is the difference between a SAFE and a CLN?

CLNs sometimes get confused with SAFEs as they are both agreements you make with investors that help you raise money before a funding round.
The main difference between SAFEs and CLNs is that convertible notes are debt-equity (also known as quasi-equity) instruments while SAFEs are equity agreements. The convertible debt can be repaid in certain scenarios, and it can carry interest, while a SAFE (such as a SeedSAFE or a SeedFAST) is not repayable at all.
When should I use a SeedSAFE?

SeedSAFEs should be used before a funding round, or as a bridge to a later funding round (that will usually take place within a year), when you want to quickly take in a small amount of investment and you don’t want to commit to a valuation.
SeedSAFEs are a flexible and attractive option if you want to quickly take an investment when traditional funding methods aren’t available or practical.
When do I need to issue equity to my investor?

It depends on what terms you choose for your agreement. Your SeedSAFE and SeedNOTE convert to equity either:
- at the next funding round, or
- when you raise above a preset qualifying amount, or
- at the longstop or maturity date
This is the date at which the agreement automatically converts if you don’t raise any more funds.
I have operations in the UK, can SeedLegals help?

Yes, absolutely. We offer a range of services in the UK and it can be more efficient to streamline your international operations through SeedLegals. Ask us for more information.
I have a UK investor and they’re asking me about SEIS/EIS relief...?

In the UK, the Enterprise Investment Schemes - SEIS and EIS - give generous tax breaks to investors in startups and scale-ups. If an investment in your company qualifies for SEIS or EIS, it can make you much more attractive to UK investors. .
Our SeedFAST agreements aren’t classed as debt so they are SEIS and EIS compliant, as long as you include a longstop date no more than six months from when your investor gives you the funds (so the agreement converts to equity within the six months).
SeedNOTEs aren’t compatible with SEIS or EIS because they’re classed as debt.

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