2022 Report on Angel Investing in Canada 110822

INVESTMENT ACTIVITY IN 2021 Deal Structures

118

A. Deal Structures (n=142) FIGURE 13

0.7%

1.4%

What is a SAFE?

The

Canadian

Simple

Preferred Shares

14.1%

Agreement Future Equity (SAFE) is modeled after the American SAFE first developed by Y Combinator, a prominent Bay Area incubator. for Essentially, SAFEs are a form of investment contract between startups and investors wherein investors, in return for contributing capital, obtain the right to receive equity shares in the startup following the occurrence of pre- determined trigger events.

Convertible Debt

35.2%

SAFE Notes

15.5%

Common Shares

Debt

33.1%

Warrants

BY PROFESSOR COLIN MASON

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