SAFEs Archives - John Dorsey PLLC

Spreadsheet for Y Combinator’s Post-Money Safe (with Valuation Cap and Optional Pro Rata Rights)

Y Combinator's post-money Simple Agreement for Future Equity (Safe) is essentially a series of mathematical equations in the form of a legal document. My spreadsheet for Post-Money Safe with Valuation Cap (and Optional Pro Rata Rights) allows companies to test hypothetical future dilution scenarios (i.e., Series A financing and liquidity event) to measure projected Safe-caused dilution to founders and others. This spreadsheet is available for purchase in downloadable Excel format here. This spreadsheet allows testing of ...

Jmdorsey2021-06-11T13:11:20-07:00

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 ...

Jmdorsey2021-06-11T13:11:20-07:00

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 ...

Jmdorsey2021-06-11T13:11:20-07:00

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.

Jmdorsey2021-06-11T13:11:20-07:00

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 ...

Jmdorsey2021-06-11T13:11:20-07:00