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FAQ
What is a SAFE agreement?
A SAFE (Simple Agreement for Future Equity) is an investment contract that allows startups to raise funds from investors in exchange for future equity, without setting a valuation at the time of investment. It was originally developed in Silicon Valley to simplify early-stage fundraising.
A SAFE works by granting investors the right to receive company shares at a future financing round, usually at a discount or with a valuation cap. This makes it a founder-friendly alternative to traditional convertible notes, as it avoids interest rates and maturity dates.
What is a SAFE agreement?
A SAFE (Simple Agreement for Future Equity) is an investment contract that allows startups to raise funds from investors in exchange for future equity, without setting a valuation at the time of investment. It was originally developed in Silicon Valley to simplify early-stage fundraising.
A SAFE works by granting investors the right to receive company shares at a future financing round, usually at a discount or with a valuation cap. This makes it a founder-friendly alternative to traditional convertible notes, as it avoids interest rates and maturity dates.
Is SAFE legally recognized in Europe?
While SAFE is widely used in the U.S., its legal enforceability and structure may vary across European countries. We are working with legal experts to ensure compliance and adoption across the region.
Who should be interested in SAFE?
Startups looking for an alternative to traditional seed funding
Investors wanting flexible early-stage exposure
Legal professionals interested in adapting SAFE to European regulations
Why do I need a Europeanized SAFE agreement?
While the original SAFE was designed for U.S. startups, European businesses operate under different legal and regulatory frameworks. EUSAFE ensures compliance with local corporate laws, tax regulations, and investor protection measures.
Key differences include:
- Adaptation to civil law systems (common in Europe) rather than common law (used in the U.S.).
- Adjustments to reflect EU securities regulations.
- Clarity on shareholder rights and investor protections.
Using EUSAFE minimizes legal risks and ensures smooth execution in your jurisdiction.