Great content! thanks for sharing the three only scenarios for uncapped SAFE´s. It makes sense. Valuation it is! Gotta polish this one over the weekend! Thanks. Steve
Question? A founder is presenting an uncapped SAFE, stating a Cap Safe agreement implies a potential valuation and would expose key new hires to fanton income tax on signing bonus shares based on this potential valuation which would be much more then current valuation filed with IRS…any experience with this scenario…any work around to this potential risk to new employees?
It really depends! It all depends on what the market is willing to bear for you hence the term, "fair market value." In some industries, it may be $2m. In others $3m, $5m, or even higher. Depends on the team, the market you are going into, unique of the solution, etc.
Towards the very end the host stated “an indication of an unsophisticated investor is being asked ‘what’s your exit strategy’ .” Why is this considered unsophisticated? Don’t investors need to know this?
This is cleanest and clearest message regarding SAPS and SAFES on the web. Thank you. Keep dropping gems Steve!
Thank you!! So easy to understand.
Great content! thanks for sharing the three only scenarios for uncapped SAFE´s. It makes sense. Valuation it is! Gotta polish this one over the weekend! Thanks. Steve
Glad you liked it and found it helpful! Thanks for watching @David!
Question? A founder is presenting an uncapped SAFE, stating a Cap Safe agreement implies a potential valuation and would expose key new hires to fanton income tax on signing bonus shares based on this potential valuation which would be much more then current valuation filed with IRS…any experience with this scenario…any work around to this potential risk to new employees?
This is great. You’re really great at this. If I understand it: it’s great.
Great video, but how much is the Cap at a fair market value for an early-stage startup with an MVP and no traction yet? thanks
It really depends! It all depends on what the market is willing to bear for you hence the term, "fair market value." In some industries, it may be $2m. In others $3m, $5m, or even higher. Depends on the team, the market you are going into, unique of the solution, etc.
Great explanation on CAP. Possible for math examples?
Excellent video, Steve!
Keep ‘em coming.
Towards the very end the host stated “an indication of an unsophisticated investor is being asked ‘what’s your exit strategy’ .” Why is this considered unsophisticated? Don’t investors need to know this?
But how do you make a SAFE
Love the video Steve! Thank you
Glad you like it! Thanks so much for watching!
Really helpful
Typo at 2:47.. great content tx
Thanks for pointing that out. Yes, it should be "CONVERSION"
thanks; your slide says "conversation" instead of "conversion"
Excellent
For bookeeping purposes, how to value a safe.
I'll admit I'm still a bit lost. Can anyone else explain? I could really use the help.