Legal FAQs
Key Considerations When Deciding Where To Incorporate
How To Incorporate a Delaware C Corp Through Clerky?
How are SOSV Program Investments Made?
What Is A SAFE?
What Does Post-Money Mean?
How Does a Post-Money Fixed Percentage SAFE Convert to Equity?
Structure of the SOSV Program Investment
Cash SAFE
Program SAFE
Additional Cash SAFE
Cash Amount
Conversion – Valuation Cap Or Discount?
What Events Trigger Conversion of Investment to Equity?
What is an Equity Financing?
What Calculation is Used to Determine the Number of Shares Issuable to the Investor Upon Conversion of the Cash SAFE?
What is an Optional Conversion?
What is a Liquidity Event?
What is a Dissolution Event?
What is a Review Conversion
What is a Pro Rata Right?
What is a Most Favored Nations Clause?
What Is an Employee Share Option Plan (ESOP) or Unissued Option Pool?
Can the Cash SAFE be Assigned?
Program Amount
Conversion to a Fixed Percentage
What Events Trigger Conversion of Investment to Equity?
What is an Equity Financing?
What Calculation Is Used to Determine the Number of Shares Issuable to the Investor Upon Conversion of the Program SAFE?
What is an Optional Conversion?
What is a Dissolution Event?
What is a Liquidity Event?
What is a Review Conversion?
What is a Pro Rata Right?
What is an Employee Share Option Plan (ESOP) or Unissued Option Pool?
What Representations and Warranties are Given with Respect to the Company’s Intellectual Property?
What are SOSV’s Vesting Requirements?
What is a Most Favored Nations Clause?
This right, a.k.a “MFN”, means that if the Company grants more favorable rights than those that exist in the SOSV investment instrument(s) either (i) prior to entering into the SOSV SAFE, or (ii) after SOSV invests into your Company and prior to conversion of the SOSV instrument – then SOSV may choose to adopt those particular more favorable rights in addition to its current rights.