What is a token purchase agreement?

A token purchase is an investment transaction, typically activated by an initial coin offering (ICO), the cryptocurrency's version of an initial public offering, or IPO. Token purchases are a vehicle for cryptocurrency companies to raise many through accredited investors.

US Legal Forms
Localized Forms
California
San Diego
Simple Agreement for Future Equity

San Diego California Simple Agreement for Future Equity

Name: San Diego California Simple Agreement for Future Equity
Brand: US Legal Forms
Rating: 4.84 (435 reviews)

Category:

Corporations - Startup - Venture Financing Process

State:

Multi-State

County:

San Diego

Control #:

US-ENTREP-008-3

Format:

Instant download

Description

This term sheet summarizes the principal terms of the proposed Simple Agreement for Future Equity ("SAFE") financing of a Company, by certain Investors. This term sheet is for discussion purposes, is not binding on an Investor, nor is an Investor obligated to consummate the financing until a definitive SAFE agreement has been agreed to and executed. The term sheet does not constitute an offer to sell or an offer to purchase securities.

View Grand Prairie Affidavit of Nonproduction

View this form

View Grand Prairie Not Same Person Affidavit

View this form

View Grand Prairie Owners Election to Declare Manufactured Housing Unit as Real Property

View this form

View Grand Prairie Statement of Ownership and Location

View this form

View Grand Prairie Certificate of Corporate Resolution

View this form

How to fill out San Diego California Simple Agreement For Future Equity?

Preparing papers for the business or individual demands is always a huge responsibility. When creating an agreement, a public service request, or a power of attorney, it's crucial to take into account all federal and state laws of the particular region. Nevertheless, small counties and even cities also have legislative provisions that you need to consider. All these aspects make it burdensome and time-consuming to create San Diego Simple Agreement for Future Equity without expert help.

It's possible to avoid spending money on attorneys drafting your documentation and create a legally valid San Diego Simple Agreement for Future Equity on your own, using the US Legal Forms online library. It is the most extensive online catalog of state-specific legal templates that are professionally cheched, so you can be sure of their validity when picking a sample for your county. Earlier subscribed users only need to log in to their accounts to save the necessary document.

In case you still don't have a subscription, adhere to the step-by-step guide below to obtain the San Diego Simple Agreement for Future Equity:

Look through the page you've opened and verify if it has the document you need.
To achieve this, use the form description and preview if these options are presented.
To find the one that satisfies your requirements, utilize the search tab in the page header.
Recheck that the template complies with juridical standards and click Buy Now.
Select the subscription plan, then log in or register for an account with the US Legal Forms.
Use your credit card or PayPal account to pay for your subscription.
Download the chosen file in the preferred format, print it, or complete it electronically.

The exceptional thing about the US Legal Forms library is that all the documentation you've ever obtained never gets lost - you can get it in your profile within the My Forms tab at any time. Join the platform and quickly obtain verified legal templates for any scenario with just a couple of clicks!

Form Rating

4.84

Satisfied(435)

Form popularity

FAQ

Is a convertible note debt or equity? Convertible notes are originally structured as debt investments, but have a provision that allows the principal plus accrued interest to convert into an equity investment at a later date. This means they are essentially a hybrid of debt and equity.

A simple agreement for future equity (SAFE) is a financing contract that may be used by a startup company to raise capital in its seed financing rounds. The instrument is viewed by some as a more founder-friendly alternative to convertible notes.

Entrepreneurs have a myriad of options for raising capital for their early-stage businesses including bootstrapping, crowdfunding, issuance of common stock, and issuance of convertible notes. Among these options is the Simple Agreement for Future Equity (SAFE).

A simple agreement for future equity (SAFE) is an agreement between an investor and a company that provides rights to the investor for future equity in the company similar to a warrant, except without determining a specific price per share at the time of the initial investment.

SAFE agreements are neither debt nor equity. Instead, they're the contractual rights to future equity. These rights are in exchange for early capital contributions invested into the startup. SAFE agreements allow investors to convert investments into equity during a priced round at some future point.

A token purchase is an investment transaction, typically activated by an initial coin offering (ICO), the cryptocurrency's version of an initial public offering, or IPO. Token purchases are a vehicle for cryptocurrency companies to raise many through accredited investors.

What Is a Simple Agreement for Future Tokens (SAFT)? A simple agreement for future tokens (SAFT) is an investment contract offered by cryptocurrency developers to accredited investors. Because SAFTs are considered securities, these tokens must comply with securities regulations.

A SAFT is a cryptocurrency investment contract between two parties. How it works: A blockchain startup agrees to launch a blockchain-based project that involves some kind of token. In exchange for funding right now, the startup enters into an agreement with investors to provide them with new tokens after launch.

These agreements are made between a company and an investor and create potential future equity in the company for the investor in exchange for immediate cash to the company. The SAFE converts to equity at a later round of financing but only if a particular triggering event (outlined in the agreement) takes place.

A KISS agreement (which is a Keep It Simple Security), is a simplified investment structure that is similar to a convertible note, which gets capital into your company much faster than more conventional methods.

More info

The lure of money leads founders to grossly underestimate the time, effort, and creative energy required to get the cash in the bank. A SAFE is an agreement that can be used between a company and an investor.The investors, invest money in the company using a SAFE. On the other hand, a SAFE can be interpreted as current equity even though it technically becomes a different class of equity in the future. Locking up certain important documents and valuables in a bank vault could turn into a headache for you or your heirs. SAFE stands for Simple Agreement for Future Equity. In a changed world, building a better future together. New Opportunities Now Available. Once approved, e-sign your loan agreement and set-up your loan for funding. Checking and savings accounts, credit cards, mortgages, investments, small business, and commercial banking.

San Diego California Simple Agreement for Future Equity

Description

Related forms

How to fill out San Diego California Simple Agreement For Future Equity?

Show more info

Form Rating

Form popularity

FAQ

Are convertible notes debt or equity?

Are Simple Agreement for Future Equity?

Is a Simple Agreement for Future Equity an option?

What is simple agreement?

Are SAFE agreements debt or equity?

What is a token purchase agreement?

What is simple agreement for future tokens?

How does a SAFT work?

How does a Simple Agreement for Future Equity work?

What is a kiss note?

More info

Trusted and secure by over 3 million people of the world’s leading companies