Create and E-Sign SAFE Agreements Using Eqvista

Securing funding can be difficult for startups and small businesses. Traditional investment agreements involve negotiations, paperwork, and valuation discussions that can be complex and time-consuming. This is where SAFE (Simple Agreement for Future Equity) agreements simplify fundraising while keeping equity management flexible.

SAFE is an agreement between a startup and an investor, providing funding in exchange for equity. Unlike traditional investments, SAFE agreements do not require a valuation at the time of investment. Instead, investors receive shares in future funding rounds. It removes complicated negotiations, making it an efficient fundraising tool for early-stage companies.

Why Use SAFE Agreements?

SAFE agreements simplify fundraising allowing startups to secure investment without determining valuation. Here are a few ways in which SAFE agreements can simplify your fundraising:

• Quick & Flexible: Simplify fundraising by removing negotiations over valuation, allowing startups to raise capital quickly.

• Cost-Effective: Unlike convertible notes, SAFE agreements don’t have interest rates or maturity dates, reducing financial pressure on startups.

• Conversion to Equity: Investors get the opportunity to convert their investment into equity during future funding rounds.

• Legally Secure & Compliant: Using SAFE agreements ensures transparency, reducing risks for both startups and investors.

Advantages of Using Digital SAFE Agreements

Traditional investment agreements can be complex and time-consuming. With Eqvista’s SAFE agreements, organizations no longer need to create agreements from scratch. The feature allows you to select the SAFE notes, and assign executors ensuring consistency and accuracy.

Digitizing SAFE agreements helps founders focus on their businesses while securing the capital without complexity. It offers several key advantages for businesses and organizations:

• Create and sign SAFE agreements digitally, eliminating manual paperwork and reducing delays in securing investments.

• Investors can review and e-sign agreements instantly, streamlining the process and improving efficiency.

• Ensure all agreements are properly documented and securely stored, making the fundraising process easier to manage.

Overall, digital safe agreements make fundraising easier by allowing companies to draft, customize, and electronically sign.

Steps to Create SAFE Agreement Using Eqvista

Eqvista offers step-by-step guidance on creating SAFE agreements. Below we have added the key steps to create a SAFE agreement:

Dashboard: Start by logging into your Eqvista account and selecting your company from the dashboard.

Create SAFE Agreement: The page displays all the agreements that have been created. To create a new SAFE agreement, click “Create SAFE Agreement”.

Customization: The feature allows you to customize the agreement elements – select notes, assign executors, and review.

Signing the Agreement: The executor and the shareholder will receive an email with the link to “View Agreement” and sign it. There are two options available to sign – Draw or Type your Signature. If the signature has been saved in Eqvista, it will be placed in every agreement assigned to them.

Download Agreement: The SAFE agreement can be downloaded once the shareholder signs it. Make sure to share access with the shareholder to view and sign the agreement.

Eqvista offers an intuitive way to manage SAFE agreements, offering standardized formats, digital approvals, and secure record-keeping. Eqvista provides a free tier, whereas other platforms typically operate on paid plans. It's important to note that the safe agreement feature is typically available for premium account holders. Kindly upgrade your account to access this functionality. 

FAQs on SAFE Agreements

This section offers answers to common questions about creating SAFE agreements.

1. Who can be assigned to execute SAFE agreements in Eqvista?

The person selected to execute and sign the agreement should be either the director, the secretary, or the President.

2. How can I sign the SAFE agreement?

An email will be sent along with an option to view the agreement and sign it. There are two options available to sign – Draw or Type your Signature. If the signature has been saved in Eqvista, it will be placed in every agreement assigned to them.

3. What are the steps to download the SAFE agreement?

The SAFE agreement can be downloaded once the shareholder signs it. Make sure to share access with the shareholder to view and sign the agreement.

4. Does Eqvista offer tutorials for creating SAFE agreements?

Yes, Eqvista provides support articles and assistance to help you create your SAFE agreements. If you need additional help, you can contact us and we will guide you.

Prepare Your SAFE Agreements With Eqvista

SAFE agreements simplify fundraising while keeping equity management flexible. Companies can secure funding faster and focus on scaling their business.

Eqvista offers a seamless way to create, customize, and e-sign SAFE agreements, ensuring a smooth and compliant process. In terms of customization, Eqvista offers multiple options compared to its competitors. 

Looking for a way to prepare SAFE agreements and enhance your organization's credibility? Start creating your SAFE agreements with Eqvista today! For more information on Eqvista, check out our support articles or contact us today!