Document background
The Simple Agreement for Future Equity (SAFE) has emerged as a preferred investment instrument for early-stage companies in New Zealand seeking to raise capital without the complexity of immediate equity issuance. This document is typically used when a company is raising pre-seed or seed funding and the parties want to defer company valuation to a future funding round. The agreement, while following similar principles to international SAFE agreements, is specifically adapted to comply with New Zealand's legal framework, including the Companies Act 1993 and Financial Markets Conduct Act 2013. It contains essential provisions for investment amount, conversion mechanisms, company and investor representations, and information rights, while providing flexibility for future equity arrangements. The document is particularly valuable for startups and investors who want a streamlined, standardized approach to early-stage investment that offers clarity and protection for all parties involved.
