SAFE Agreement

This SAFE is the Canada Version 1.2 Post-Money Valuation Cap form. It gives an investor a future right to equity, with conversion and payout mechanics tied to defined financing and liquidity events.

  • Uses a post-money valuation cap to set Safe Price and Liquidity Price calculations.
  • Automatically converts in an equity financing into the greater of standard preferred or SAFE preferred share outcomes.
  • Defines liquidity and dissolution outcomes as the greater of cash-out amount or conversion amount, subject to liquidation priority.
  • Sets liquidation priority junior to debt, pari passu with other Safes/preferred, and senior to common for cash-out rights.
  • Includes comprehensive defined terms (e.g., company capitalization, liquidity event, options, converting securities, direct listing).
  • Contains company and investor representations, transfer and amendment rules, securities law restrictions, and governing law provisions.

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