Two Client Case Studies: How to Raise Capital Using the New SAFE for LLCs

I created the Simple Agreement for Future Equity (SAFE) for LLCs for my LLC clients that needed a simple financing instrument to raise capital swiftly without much legal expense, while retaining pass-through tax treatment for their businesses. The SAFE for LLCs is an alternative to the Y Combinator SAFE, which is designed specifically for C-Corporations. With the passage of the Tax Cuts and Jobs Act of 2017, the LLC remains an excellent structure for many business entities, the individual owners of ...

2021-06-11T13:11:20-07:00

Introducing the Simple Agreement for Future Equity (SAFE) for LLCs

Updated March 31, 2021: There are now two versions of the model form Safe for LLCs: The new post-money Safe with valuation cap (short form), which may be viewed here and purchased here; and The original pre-money long-form Safe with optional discount and valuation cap, which may be viewed here and purchased here. ----- My Simple Agreement for Future Equity (SAFE) for LLCs is the first SAFE specifically designed for limited liability companies classified under ...

2021-06-11T13:11:20-07:00

Free, Publicly-Available Startup Company Forms and Document Generators

The angel investor network Blue Water Angels has compiled a nice summary of free, publicly-available, startup forms and document generators, including direct links to those forms and generators, all available here. Remember: even if you start with a good form, always engage your favorite corporate lawyer to review your documents before signing off. The devil is in the details.

2021-06-11T13:11:20-07:00

How to Maximize Your Minority Rights in Small-Scale Private Equity Investments

Even if you consider yourself a small-scale investor in private companies relative to today's private equity giants, you should seek certain basic minority rights to protect your investment and enhance your exit opportunities.  In fact, most minority protections that a small-scale investor should seek are exactly the same as those that any larger PE fund would require. Among my clients, these small-scale private equity investments generally range from $100,000-$3,000,000 for purchases of 10%-30% of a company's outstanding equity.  They ...

2021-06-11T13:11:20-07:00

Introducing the Simple Safe Spreadsheet (for pre- and/or post-money Safes)

There are two versions of the Simple Safe Spreadsheet: New (March 2021)!  To view and purchase the new post-money Simple Safe Spreadsheet, please click here. This spreadsheet is for use with Y Combinator's post-money Safe, Valuation Cap (No Discount). To purchase a downloadable Excel version of the Simple Safe Spreadsheet for pre-money Safes, click here. Thank you for supporting this project and please stay tuned for future startup friendly resources. ***** Y Combinator’s Simple agreement for future equity ...

2021-06-11T13:11:20-07:00
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