We give complete freedom to entrepreneurs.

Back to basics, why do we all love SAFE?

SAFE Agreements are even simpler than convertible notes that allow investors to invest without actually getting the equity, setting the price, or getting any governance rights. Given its standardized format, neither party need any legal support or much negotiation. Only important provisions such as early exits, dissolution, and conversion to equity are clearly defined, assuring that the signee will be getting the same class of shares as the lead investor during conversion. This brings speed more than anything else.

Say no out of strength, instead of yes out of weakness!

Please don’t let investors take whatever right they want

What an investor can ask for goes beyond my imagination, but I tried to put down some of the rights I often encounter. Some of these rights will naturally be given to investors that are putting much more capital in later rounds, but please don’t yield and let investors get these rights in simple seed rounds (up to ~$2M).

Use our template.

We use SAFE or KISS notes while investing in companies based in the United States or Estonia. Investing in Turkish startups through a convertible note is problematic and has its downsides (we can get into all that later). That’s why we localized the format in the form of an equity agreement that clearly ensures the financial rights we want to have while also giving complete operational freedom to the founders.

Learn to say no when you have to or you will be forced to say yes when you don’t want to.

Putting this here as the post preview :)

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Enis Hulli

Enis Hulli

Partner @500Startups Istanbul, enis@500.co, Glocal Podcast theglocal.co