Key Terms
Everything you need to know about the SAFE agreement, in plain English.
| Instrument | SAFE (Simple Agreement for Future Equity) |
| Type | Post-money, valuation cap only, no discount |
| Valuation Cap | £300,000 |
| Target Raise | £10,000–£15,000 |
| Minimum Investment | £500 |
| Maximum Investment | £3,000 |
| Conversion Triggers | Next priced equity round, acquisition, or IPO |
| Pro-rata Rights | None at this stage |
| Information Rights | Monthly founder updates via investor portal |
| SEIS | Advance assurance being sought |
| Governing Law | England and Wales |
Why £3,000 Maximum?
This is a friends and family round. The cap exists to protect relationships. We'd rather have ten people invest £1,000 each than one person invest £10,000. If this goes wrong, we want it to be a disappointing dinner conversation, not a friendship-ending one.
Dilution Quick Reference
Ownership percentage at £300,000 valuation cap, before any future dilution.
| Investment | Ownership |
|---|---|
| £500 | 0.17% |
| £1,000 | 0.33% |
| £2,000 | 0.67% |
| £3,000 | 1.00% |
SEIS Tax Relief
SEIS advance assurance is being sought. If granted, investors may be eligible for 50% income tax relief on their investment.