The Alameda, California Term Sheet — Simple Agreement for Future Equity (SAFE) is a legal document used in investment and funding transactions. It serves as a framework for agreements between startups and investors, outlining the terms and conditions of the investment and the future equity that the investor will receive. Designed to streamline the investment process, the Alameda California Term Sheet — SAFE provides a simplified and standardized approach, making it attractive to both parties involved. It offers flexibility, protecting both the startup and the investor's interests while reducing the negotiation time and legal costs associated with traditional equity financing deals. In Alameda, California, there are several types of Term Sheet — SAFE agreements that investors and startups can consider: 1. pre-Roman SAFE: This type of term sheet value the company before any additional investment and outlines the agreed-upon percentage of equity the investor will receive in the future funding round. 2. Post-Money SAFE: Unlike the pre-money SAFE, the post-money SAFE determines the equity percentage based on the company's valuation after the additional investment has been made. 3. Valuation Cap: This type of term sheet includes a maximum valuation limit, ensuring that the investor's equity stake will be calculated based on the valuation cap, even if the company's value exceeds it in subsequent funding rounds. 4. Discount Rate: Some term sheets offer a discount rate to incentivize early investors. This enables them to purchase equity at a predetermined discount from the valuation set in the subsequent funding round. By using the Alameda, California Term Sheet — SAFE, both startups and investors can establish a clear understanding of the investment terms, protecting their rights and minimizing future conflicts.