Seed Investment Simple Agreement For Future Equity
To complicate matters a bit, a SAFE sometimes has a discount. Thus, the “old” proportional right is removed from the new safe, but we have a new (optional) letter that offers the investor a proportional right in the financing of the Series A Preferred Stock, based on the investor`s as-converted secure ownership, which is now much more transparent. Whether or not a startup and an investor take the secondary letter with a safe, it will now be a decision that will be made by the parties and it can depend on a large number of factors. . . .