SAFEs are by far the most commonly used funding mechanism for early-stage founders: In the first half of 2023, four out of five pre-seed investments were SAFEs.
But as SAFEs have increased in popularity, they’ve become more nuanced. Investors and founders sometimes agree to modify standard SAFE templates to include specific provisions in their deals.
That’s why we’ve added a new feature to our SAFE financing tool: Now you can upload a customized SAFE and customized side letters directly on Carta.
Here’s how it will benefit you:
Greater flexibility: Carta already offers standardized templates for SAFE deals and pro-rata side letters. Now founders can issue customized SAFEs: If you and your investor want to create a SAFE with unique language governing discount, valuation cap, pro rata rights, or other provisions, you can upload your own bespoke SAFE agreement and side letter and finish the deal on Carta.
Save time: Prior to the update, startup founders had to manage the issuance process for custom SAFEs and side letters off-platform. Now you can get both signed, issued, and funded through the Carta platform, helping you fundraise faster. We’ll update your cap table automatically regardless of how complex the terms end up.
Simple workflow: When you’re ready to issue a SAFE, you upload your custom SAFE document and side letter. We’ll generate a signature page for you and your investor to complete. Once the issuance process is complete, we log your custom SAFE agreement and update your cap table while you get back to running your startup.
Interested in issuing a custom SAFE? Get started today.
DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a Carta Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. ©2023 eShares Inc., d/b/a Carta Inc. ("Carta"). All rights reserved. Reproduction prohibited.
