Finding the right Pre-Money SAFE (Simple Agreement for Future Equity) template is crucial for early-stage fundraising. Let's explore the most trusted sources and understand their unique offerings.
Quick Recap of Pre-Money SAFE Templates
| Source | Template Type | Last Updated | Key Feature | Best For |
|---|---|---|---|---|
| Y Combinator | Official | 2023 | Industry Standard | All Startups |
| NVCA | Community | 2023 | Annotated | First-time Founders |
| 500 Startups | Accelerator | 2024 | Founder-Friendly | Early Stage |
| Techstars | Accelerator | 2024 | Customizable | Tech Startups |
| SeedLegals | Platform | 2024 | Interactive | UK/EU Startups |
What is a SAFE Agreement?
A SAFE (Simple Agreement for Future Equity) is a financing instrument commonly used by early-stage startups to raise capital. Created by Y Combinator in 2013, it offers a simpler alternative to convertible notes, allowing companies to defer valuation discussions until a later funding round.
Typical Users
| User Type | Common Scenario |
|---|---|
| Pre-seed Startups | Initial fundraising before product-market fit |
| Angel Investors | Early-stage investments with simplified terms |
| Accelerators | Standard investment vehicle for program participants |
| First-time Founders | Quick fundraising without complex negotiations |
1. Y Combinator's Official SAFE Templates
The gold standard in the industry, created by the organization that invented the SAFE.
Why It's Great:
- Industry Standard: Most widely accepted by investors
- Well Documented: Includes detailed explanations
- Regular Updates: Maintained and updated regularly
- Free Access: No cost to use
2. NVCA Model Documents
National Venture Capital Association's comprehensive template collection.
Why It's Great:
- Community Reviewed: Vetted by industry professionals
- Detailed Annotations: Explanations for each clause
- Alternative Provisions: Multiple scenarios covered
- Educational Resources: Supplementary learning materials
3. 500 Startups Resources
One of the world's leading accelerators providing founder-friendly templates.
Why It's Great:
- Startup-Focused: Designed for early-stage companies
- Global Perspective: Used across international markets
- Practical Guidance: Includes usage examples
- Community Support: Access to founder network
4. Techstars Founder Toolkit
Comprehensive resource collection from a leading global accelerator.
Why It's Great:
- Practical Templates: Based on real startup experiences
- Mentor Reviewed: Validated by experienced investors
- Industry Specific: Tech-focused adaptations
- Founder Education: Includes implementation guides
5. SeedLegals Platform
Modern platform specifically designed for startup legal documents.
Why It's Great:
- European Focus: Compliant with UK/EU regulations
- Interactive Builder: Guided document creation
- Automated Updates: Regular template improvements
- Integrated Support: Legal guidance included
Key Considerations When Choosing a Template
1. Legal Compliance
| Aspect | What to Check |
|---|---|
| Jurisdiction | Template compatibility with your location |
| Updates | Last revision date and changes |
| Legal Review | Attorney verification status |
2. Investor Acceptance
| Factor | Importance |
|---|---|
| Recognition | How widely accepted is the template |
| Customization | Ability to modify terms |
| Track Record | Usage history in deals |
3. Implementation Support
| Feature | Benefit |
|---|---|
| Documentation | Clear usage guidelines |
| Support | Available help resources |
| Tools | Integration capabilities |
Common Elements in Pre-Money SAFEs
-
Standard Terms:
- Valuation Cap
- Discount Rate
- Conversion Provisions
- Most Favored Nation Rights
-
Key Sections:
- Investment Amount
- Company Representations
- Investor Rights
- Conversion Mechanics
-
Optional Features:
- Pro-rata Rights
- Information Rights
- Amendment Provisions
Create Your SAFE Agreement
Share your SAFE documents using Papermark
How? Share your SAFE agreements and supporting documents as secure links not as attachments and track investor engagement
- Get notified when investors view your SAFE documents
- Track how long they spend on each page of your agreements
- Capture emails of investors who accessed your documents
- Protect your legal documents using watermark, screenshot protection and other link permissions
- Securely send data room with complete fundraising package:
- SAFE agreements
- Cap table
- Financial projections
- Corporate documents
Conclusion
While these sources provide excellent templates, it's crucial to have legal counsel review any agreements before use. Choose a template that best fits your startup's needs and jurisdiction, and ensure proper legal review before implementation.