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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