We have standard terms for all companies: $150,000 SAFE (simple agreement for future equity) with a $2M or $4M valuation cap, in exchange for a one-time $50k membership fee for our value-added services. This means $100k lands in your bank account and a slew of services at your fingertips!
Why the SAFE?
Because we invest at scale we require simple tools to allow us to add value as fast and efficiently as possible. As a flexible, one-document security without numerous terms to negotiate, SAFEs end up saving both entrepreneurs and investors money in legal fees and reduce the time spent negotiating the terms of the investment.
A SAFE note is a convertible security that, like an option or warrant, allows the investor to buy shares in a future priced round. It addresses many of the drawbacks and challenges posed by more traditional convertible notes and can be an equitable option for investors and founders. SAFE notes, unlike convertible notes, are not debt and therefore do not accrue interest. There also is no maturity or end date on the SAFE.