Simple Agreement For Future Equity Cap Table

In the exercise of proportional rights, the investor pays the new price of the cycle and not the price he paid at the time of the initial conversion of the SAFE. In the case of start-up operations, companies can offer warrants to incentivize investors to invest sooner rather than later, as warrants allow investors to reload their initial investment at the same price in the future, thereby reducing the risk of that investment. This practice is often associated with the issuance of convertible bonds. The concentration is particularly attractive to investors, as warrants are a non-committed appreciation of capital, while convertible bonds are an often interest-bearing loan.