Welcome to our guide on the free fundraising templates provided by Fairmint, specifically designed to assist startups in their early-stage financing efforts. Our templates are based on the Simple Agreement for Future Equity (SAFE), a tool introduced by Y Combinator that has become an industry standard due to its effectiveness and simplicity.
Here's a quick rundown of the SAFE templates available through Fairmint:
SAFE with Discount, no Valuation Cap: Allows investments to convert into equity at a discount in the next funding round without a valuation cap.
SAFE with Discount, no Valuation Cap + Token Side Letter: Includes a token side letter for ventures looking into token offerings, in addition to the standard discount.
SAFE with MFN, no Valuation Cap, no Discount: Features a "Most Favored Nation" clause, ensuring that if more favorable terms are offered in the future, they will apply to this investment as well.
SAFE with Valuation Cap, no Discount: Caps the valuation at which the investment will convert to equity, providing a clear limit on potential dilution.
SAFE with Valuation Cap, no Discount + Token Side Letter: Combines a fixed valuation cap with a token side letter, suitable for startups incorporating tokens or cryptocurrencies into their business model.
Why Use Fairmint’s SAFE Templates?
Industry Standard: These templates are well-recognized and often expected by investors, facilitating smoother negotiations.
Efficiency: Designed to streamline the funding process, reducing the time and cost associated with negotiations and legal fees.
Clarity and Fairness: Especially with post-money SAFEs, all parties can easily understand the terms of equity exchange.
Best Practices:
Explore the Safe User Guide for detailed insights into how these agreements function, including conversion examples.
Engage a legal professional to ensure the chosen template fits your specific fundraising goals and legal requirements.
Happy fundraising!