So... What is SAFE?
SAFE, or a Simple future Equity agreement, is designed to help individuals and companies invest quickly and effectively in early-stage startups. This legal agreement was created by Y Combinator in 2013 to simplify the process of supporting great companies and ideas. This was made possible in 2012, when the SEC established guidelines to allow individual investors to participate in crowdfunding activities through the JOBS Act (The Jumpstart Our Business Startups Act). Since that time, SAFE has been used by countless startups as a primary route for early fundraising.
Nwicode, SAFE and you
While Nwicode has a solid product with a clear roadmap, it's a bit difficult to determine what its future valuation will be. Choosing too high a valuation can be intimidating for investors, and choosing too low a valuation can minimize a company's actual assets. That's why we decided to use a security note that solves the problem of overestimating or underestimating the value of Nwicode.
Explanation of the upper limit of the estimate
Our SAFE note also includes a valuation cap that will determine the maximum amount that your SAFE note will convert into equity. Nwicode valuation cap has been set at $4.5M and a 20% discount. Once we raise another round of funds at a valuation of, let’s say, $14M, your SAFE will convert to equity at the capped value of $4.5M. You may ask, what if we raise funds again on a $3M valuation? Well, your SAFE will convert at a $3M valuation or a 20% discount of the valuation cap ($4.5M - 20%) whichever entitles you to more equity. We wanted to make sure that we’re offering a fair and exciting opportunity for our early bird investors. Keep reading to learn about our valuation cap discount!
The Bang for your Buck
Anyone that invests in the campaign before it reaches $125,000 in funds raised will receive a 8% discount on the valuation cap. Best of all, you can invest as low as $100 to as much as you would like.
If you have any further questions, please feel free to post them on our Q&A page and we will get back to you asap! 😃