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A Simple Agreement for Future Equity (SAFE) lets startups raise quick funding without immediately setting a company valuation. It's a popular financing tool in Belgian tech hubs where founders promise investors future shares instead of immediate equity or debt obligations.

Under Belgian corporate law, SAFEs convert to shares when specific triggers occur, like a priced funding round or company sale. This gives investors potential upside while letting founders maintain control and avoid complex negotiations early on. The agreement typically includes conversion terms, valuation caps, and discount rates that comply with Belgian financial regulations.

Simple Agreements for Future Equity work best for Belgian startups needing quick capital without the complexity of traditional funding rounds. They're particularly valuable when your company shows promise but hasn't reached a stage where determining an accurate valuation makes sense.

Consider using a SAFE when investors are eager to back your venture but formal equity negotiations could slow down growth. This tool fits perfectly with Belgian scale-ups in technology, biotech, or innovative sectors where rapid development matters more than immediate share distribution. It's also ideal when you need to close multiple small investments efficiently while preserving flexibility for future funding rounds.

• Valuation Cap SAFE: Sets a maximum company value for converting investment to equity, popular among Belgian tech startups
• Discount SAFE: Offers investors shares at a reduced price compared to later investors, common in early-stage funding
• MFN (Most Favored Nation) SAFE: Automatically updates terms if better ones are offered to future investors
• Post-Money SAFE: Clearly defines ownership percentages based on the company's post-money valuation, reducing confusion during conversion
• Basic SAFE: Simple version without caps or discounts, used mainly for straightforward funding rounds in Belgian SMEs

• Startup Founders: Sign SAFEs to secure quick funding while maintaining control over their company's early development phases
• Angel Investors: Use these agreements to invest in promising Belgian startups while securing future equity rights
• Corporate Lawyers: Draft and review SAFEs to ensure compliance with Belgian corporate law and protect client interests
• Investment Advisors: Guide clients through SAFE terms and implications, especially regarding valuation caps and conversion triggers
• Business Accelerators: Often facilitate SAFE agreements between startups in their programs and potential investors

• Company Details: Gather current company valuation, share structure, and registration details from the Belgian business registry
• Investment Terms: Define the investment amount, valuation cap, and any discount rates for future equity conversion
• Trigger Events: Specify conditions that will convert the SAFE into equity under Belgian corporate law
• Investor Information: Collect all required KYC documentation and investment capacity verification
• Board Approval: Secure necessary internal authorizations and document them properly
• Review Process: Use our platform's automated SAFE generator to ensure all mandatory elements comply with Belgian regulations

• Parties' Information: Complete legal names, addresses, and registration numbers of the company and investor
• Investment Terms: Precise amount, currency, and payment conditions under Belgian financial regulations
• Conversion Mechanism: Clear triggers and formulas for equity conversion, including valuation methodology
• Rights and Obligations: Detailed responsibilities of both parties during the pre-conversion period
• Governing Law: Explicit reference to Belgian corporate law and jurisdiction
• Exit Provisions: Terms for company sale, dissolution, or IPO scenarios
• Signature Block: Space for authorized representatives with proper attestation requirements

While Simple Agreements for Future Equity (SAFEs) and Equity Agreements both deal with company ownership, they serve distinctly different purposes in Belgian business law. SAFEs are forward-looking instruments that promise future equity, while traditional Equity Agreements establish immediate share ownership and shareholder rights.

• Timing of Rights: SAFEs defer equity conversion until specific triggers occur, while Equity Agreements create instant shareholding status
• Valuation Requirements: SAFEs can be issued without setting a firm company valuation, making them ideal for early-stage startups
• Shareholder Rights: Equity Agreement holders gain immediate voting and dividend rights; SAFE holders must wait until conversion
• Administrative Burden: SAFEs require minimal paperwork and avoid complex share issuance procedures that Equity Agreements demand
• Flexibility: SAFEs offer more adaptable terms for future funding rounds, while Equity Agreements lock in specific ownership structures