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--- business:funding:safe_contract_example [2023/10/09 01:34] – wikiadmin
+++ business:funding:safe_contract_example [2023/10/12 14:45] (current) – wikiadmin
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 Printed Name: ___________________
+----
+Creating a safe contract with a discount and a vesting period for a $100,000 investment typically involves customizing the terms and conditions within a Simple Agreement for Future Equity (SAFE) agreement. SAFEs are commonly used in startup financing to provide investors with the option to convert their investment into equity at a later date. Here's an example of a simplified SAFE contract with a 20% discount and a 12-month vesting period for a $100,000 investment:
+**SAFE AGREEMENT**
+**Investor:** [Investor Name]
+**Company:** [Startup Company Name]
+**Date:** [Date]
+**1. Investment Amount:**
+The Investor shall invest the sum of $100,000 (the "Investment Amount") into the Company.
+**2. Valuation Cap:**
+There is no valuation cap associated with this SAFE agreement.
+**3. Discount Rate:**
+The Investor is entitled to a discount of ( 20% on USD, 30% on PKR ) on the price per share payable by other investors in a future qualified financing round.
+**4. Vesting Period:**
+The Investment Amount shall vest over a 12-month period, with 1/365th of the Investment Amount vesting on 00:01 of each day of the year.
+**5. Conversion into Equity:**
+Upon the occurrence of a qualified financing round (as defined below), the Investment Amount, plus any accrued and unpaid interest, shall convert into equity at a price per share that is 20% less than the price per share paid by other investors in the financing round.
+**6. Qualified Financing Round:**
+A qualified financing round is defined as a financing round where the Company raises at least $[Minimum Amount] in a single transaction at a post-money valuation of at least $[Minimum Valuation].
+**7. Repayment:**
+If a qualified financing round does not occur within 36 months from the date of this SAFE agreement, the Company shall repay the Investment Amount, plus any accrued and unpaid interest, to the Investor.
+**8. Miscellaneous:**
+a. This SAFE agreement is governed by the laws of [State/Country].
+b. Any dispute arising under or in connection with this SAFE agreement shall be subject to arbitration in accordance with [Arbitration Rules].
+c. This SAFE agreement may only be amended in writing and signed by both parties.
+This is a simplified example of a SAFE agreement. In practice, it's important to consult with legal professionals to draft a contract that complies with relevant laws and regulations and to ensure it reflects the specific terms and conditions agreed upon between the investor and the startup. Additionally, it's crucial to consider any tax implications and consult with financial advisors before entering into such an agreement.