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Regulation D Resources

A “SAFE” is a “Simple Agreement for Future Equity” and is an agreement that provides the holder with an option to purchase equity in a company in the future at a valuation and share price to be determined in the future. These agreements are being used more frequently – but are they the right fit for your company?

In general we see SAFEs working well with sophisticated institutional type investors rather than the average individual “retail” investor.  The main reason for this is the complexity of the agreement and the fact that the valuation is an unknown for the investor at the time of the SAFE agreement execution. It is also important to note that a SAFE agreement is considered a security and thus needs to be sold through a proper and SEC compliant offering.

When executing an offering under Reg CF or Reg A+ where the focus is retail investors we believe the issuer is typically better positioned for success by selling common equity from the outset and using a defined valuation rather than using a SAFE agreement.  

Interested in raising capital for your company or project?  Call us today to discuss! (720) 586-8610.