Silicon Prairie SAFE+R (EXISTING)(MN) Forum / All Topics
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| The SAFE+R : A Simple Agreement for Future Exchange Plus Repurchase | 2024-06-25 12:50:07 |
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| admin2024-06-2512:49:47 | The SAFE+R : A Simple Agreement for Future Exchange Plus RepurchaseSilicon Prairie is currently offering our investors a SAFE+R security this round. A Simple Agreement for Future Exchange Plus Repurchase ("SAFE+R") begins life as a classic convertible note, say for 36 months that gives management the opportunity to hit its milestones and launch the priced round. If we do not do what we say we are going to do in that time frame, investors could elect to enter the repurchase or "repo" period for some or all of their original investment and get paid back the principal amount over say the subsequent 36 months. To be be clear, even the SAFE+R itself would be eligible to resold on our Secondary Market in as soon as eligible -- typically after one year holding period or subject to a few exemptions permitted before then. SPPX Site Administrator |
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| admin | Repurchase Protects PrincipalIf an investor elects to enter repurchase for some or all of their investment after the initial SAFE period has expired, or at any annual window thereafter, they forgo any equity upside in exchange for a "liquidation preference" ahead of the equity holders. Basically this means that in any liquidation event, including planned or unplanned, the REPO holders have priority over any equity holder claims (but would be subordinated to superior debt such as a bank financing). SPPX Site Administrator |