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?
What is a Put Right?
What is an Observer Right?
What are Information Rights?
What is the Major Investor Designation Clause?
What is a Pre Conversion Pro Rata Right?
What is a First Financing Right?
What is the Investor Consent Matters Clause?
What are the Program Participation Requirements?
SOSV’s Programs (HAX and IndieBio) are designed to help your Company realize its maximum potential. The SOSV Program itself cannot do the work for you. Rather, SOSV provides expertise, mentorship, certain technical or scientific resources and expert advice and introductions over the course of the Program. It is also the starting point of a long-term relationship between SOSV and the Founders. With this in mind, SOSV expects all teams to fully participate in the Program and be onsite at the relevant SOSV Program location as required. SOSV knows that there are sometimes meetings and trips outside the Program that cannot be avoided but on the whole, if you are on the Program, it is expected that you will give it your full attention, terminating any other employment, and participate fully in the itinerary of the Program in order to get the maximum benefit for you, your team and your Company. Each SOSV Founder is required to comply with the terms of the SOSV Code of Conduct.