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Venture Capital And Private Equity

Safe Simple Agreement for Future Equity

Drafting SAFE agreements manually requires extensive knowledge of venture capital terms, careful attention to conversion mechanics, and hours of document preparation. Attorneys must ensure valuation caps, discount rates, and triggering events are precisely defined while maintaining compliance with securities regulations and protecting both investor and company interests.

Automation ROI

Time savings at a glance

Manual workflow4.5 hoursAverage time your team spends by hand
With CaseMark12 minutesDelivery time with CaseMark automation
EfficiencySave 26.3x time with CaseMark

The Problem

Drafting SAFE agreements requires precise conversion mechanics, complex valuation calculations, and comprehensive investor protections that take attorneys hours to structure correctly. Startups and investors need legally sound documents quickly to close funding rounds, but manual drafting is time-consuming and prone to inconsistencies with prior agreements or cap table structures.

The CaseMark Solution

CaseMark automates SAFE agreement creation by analyzing your investment terms and company documents to generate comprehensive, legally precise agreements with proper conversion formulas, investor protections, and securities law compliance. The AI ensures consistency with your existing capital structure while producing professional documents ready for execution in minutes instead of hours.

Key benefits

How CaseMark automations transform your workflow

Reduce SAFE drafting time from 3+ hours to under 10 minutes

Ensure accurate conversion price calculations with automated valuation cap and discount rate provisions

Generate compliant investor and company representations tailored to your transaction

Customize equity financing, liquidity event, and dissolution event terms with guided prompts

Maintain consistency across multiple SAFE issuances with standardized templates

What you'll receive

Document Header with Company and Investor Details
Purchase Amount and Date Specifications
Agreement Terms and Introduction
Equity Financing Conversion Provisions
Liquidity Event Terms and Options
Dissolution Event Procedures
Valuation Cap and Discount Rate Mechanics
Conversion Price Definitions
Liquidity Price Calculations
Investor Representations and Warranties
Company Representations and Warranties
No Stockholder Rights Clause
Transfer Restrictions
Governing Law Provisions

Document requirements

Required

  • Investment Terms

Optional

  • Certificate of Incorporation
  • Prior SAFE Agreements
  • Capitalization Table
  • Board Resolutions

Perfect for

Startup founders raising seed capital
Corporate attorneys handling venture capital transactions
Angel investors and early-stage venture capital funds
In-house counsel at emerging growth companies
Startup accelerators and incubators processing multiple investments

Also useful for

This workflow is applicable across multiple practice areas and use cases

Corporate Finance95% relevant

Corporate finance attorneys regularly structure and document early-stage financing transactions using SAFE agreements as alternatives to traditional equity or debt instruments.

SAFE agreements are fundamental corporate finance instruments for seed-stage capital raises, requiring the same drafting precision and financial term calculations as other financing documents.

Securities attorneys must ensure SAFE agreements comply with securities regulations and properly document exempt offerings under Regulation D or Regulation CF.

SAFE agreements are securities instruments that trigger federal and state securities law compliance requirements, making accurate drafting essential for regulatory compliance and investor protection.

Corporate governance attorneys need SAFE agreements to document equity compensation structures and manage cap tables for emerging companies establishing governance frameworks.

SAFE agreements directly impact corporate governance by creating future equity rights that affect voting, control, and stockholder composition, requiring careful documentation in governance structures.

M&A attorneys must analyze and account for outstanding SAFE agreements when structuring acquisitions, as these instruments convert upon liquidity events and affect purchase price allocation.

SAFE agreements contain liquidity event provisions that trigger conversion in M&A transactions, requiring M&A counsel to understand their terms and calculate their impact on deal economics.

Frequently asked questions

Q

What information do I need to generate a SAFE agreement?

A

You need the basic investment terms including purchase amount, valuation cap, and discount rate. CaseMark can extract additional details from uploaded term sheets, incorporation documents, or prior SAFE agreements. If you provide your cap table, the system ensures conversion calculations align with your existing capital structure. The AI will identify any missing critical information and request specific details needed to complete the agreement.

Q

How does CaseMark handle the conversion mechanics and valuation calculations?

A

CaseMark generates precise conversion formulas showing both valuation cap and discount rate methodologies, automatically calculating which produces more favorable terms for the investor. The system includes worked examples demonstrating how conversion prices are determined under different scenarios. All mathematical formulas are stated with institutional-grade precision so any financial professional can apply them without ambiguity.

Q

Will the SAFE agreement comply with securities laws and investor qualification requirements?

A

Yes, CaseMark includes comprehensive accredited investor representations covering all qualification pathways, securities law compliance provisions, and transfer restrictions required for private placement exemptions. The agreement acknowledges that securities are unregistered, includes appropriate restrictive legend language, and contains investor suitability representations that support your reliance on registration exemptions under federal and state securities laws.

Q

Can I customize the SAFE agreement for specific deal terms or investor requests?

A

Absolutely. CaseMark generates a complete first draft based on your inputs and uploaded documents, which you can then review and modify. The system identifies standard market terms while accommodating special provisions like transfer exceptions, alternative dispute resolution, or modified liquidity event options. You maintain full control over final terms while benefiting from AI-powered drafting that handles the complex structural and calculation provisions automatically.

Q

How does this compare to using standard SAFE templates?

A

Unlike static templates, CaseMark analyzes your specific company documents and investment terms to generate customized agreements with accurate conversion calculations, proper party identification, and consistency with your existing capital structure. The AI explains complex provisions in context, includes worked examples for your specific valuation terms, and ensures all cross-references and defined terms are internally consistent. You get institutional-quality customization without the hours of manual drafting required to adapt generic templates.