Fundraise with SAFEs
Learn how you can fundraise for your startup by creating, sending and tracking SAFEs from your Dashboard.
After Atlas incorporates your C corp, you can begin fundraising. With Atlas, you can create a board consent to approve a fundraise, and then send Simple Agreements for Future Equity (SAFEs) to investors. After signing a the related setting, your investors can transfer funds to your Stripe Treasury or a bank account of your choice.
Atlas uses the Y Combinator-drafted template for post-money SAFEs with valuation caps, which is the most commonly used type of the related setting.
Obtain board consent to fundraise
Before creating a the related setting, Atlas helps you obtain board consent to authorise fundraising using SAFEs:
- Set up fundraising . Navigate to the Fundraising tab in your Atlas Dashboard and select Begin fundraising .
- Enter the amount you plan to raise with SAFEs . Enter the maximum amount you plan to raise using SAFEs. Atlas will generate a board consent document that your board can sign to approve fundraising up to this amount. You can’t issue SAFEs using Atlas beyond this amount without working with a lawyer to sign a new board consent. Learn about how much to fundraise .
- Obtain board consent . Select Next for Atlas to generate a pre-filled board consent document with your company details and maximum fundraising amount. Cooley , a leading law firm for startups, drafted the Atlas board consent documents.
- Confirm board members . Confirm the list of board members is accurate. Select Send for signature and Atlas emails all board members using DocuSign to collect signatures.
- Sign board consent documents . After all board members have signed, your Dashboard shows that board consent is complete and you can begin sending SAFEs.
Send and sign a the related setting
After obtaining board approval, you’re ready to generate and send SAFEs to your investors:
- Create a the related setting . Click Create the related setting on the Fundraising tab in your Atlas Dashboard.
- Enter investor information . Enter the investment amount and valuation cap , whether your investor is an individual or institution, and investor details. Because of SEC regulations, law firms recommend confirming investors are “accredited.” Learn more about accredited investors .
- Confirm the signer . This person is authorised to fundraise on behalf of your company. The CEO is usually the signer.
- Send for signatures . The the related setting is sent to both the investor and company signer using DocuSign. They each receive an email from “Stripe Atlas via DocuSign” asking them to sign electronically. You receive an email from both DocuSign and Atlas when both the investor and the company signer have signed the the related setting.
- Track status. Use the Fundraising table to stay updated on the state of a given the related setting note, which can be Signed, Sent, Funded, Partially Funded or Voided.
If you aren’t ready to send a the related setting, but want to create a draft, follow the above steps, click close ( x) in the upper left corner before you Send for signature. You can then edit and send this draft from your Dashboard when you’re ready.
Fund your the related setting
You need to transfer funds to a financial account or your bank account because the the related setting note is executed by the investor and the company. After you submit an application for Stripe Treasury and receive confirmation, you can use your financial account to receive investment funds.
- Automatic funds request . After both parties sign the the related setting, Atlas sends an email to the investor with a link to an investment details web page. You also receive confirmation that the investment request was sent.
- Investor receives transfer details . The investor copies the routing and account number or wallet address for your financial account, depending on your currency eligibility and your investor’s preference. The investment details page includes the commitment amount, investment name, and current state of the investment.
- Investor sends funds . The investor uses their bank account or custodial wallet to send either the entire investment balance or a partial amount.
- Funds available in your balances . When you receive funds from your investor, you can navigate to the Balances to see the updated balance in your financial accounts. You can also see recent transaction history, including any received investment funds.
- the related setting is marked as completed . As soon as you receive the funds, the investment is marked as Funded in the Fundraising table.
Funding methods
You can use one of the following funding methods to fund your the related setting:
| Funding method | Funds available | Fee | Where to initiate |
|---|---|---|---|
| Your investors fund the related setting investment using ACH | 1 business day | Free | From your bank |
| Your investors fund the related setting investment using a wire | Same day | US$2 | From your bank |
Note
Stripe doesn’t support the related setting funding.
You can opt not to use a Stripe Treasury and instead provide investors with your bank details manually. In that case, update the the related setting status to Funded in the Fundraising table.
Definitions
Post-money the related setting
“Post-money” means the the related setting investor’s ownership is calculated as a percentage of the company after their the related setting and all other SAFEs at the time have converted. For example, if you raise a 500,000 USD the related setting on a 5 million USD post-money valuation, your investor owns 10% of the company after conversion.
Valuation cap
The valuation cap is the maximum company valuation at which the the related setting converts into equity in your company. If you raise money at a higher valuation than the valuation cap of a prior the related setting, the investor on that the related setting receives shares in your company as if the company were valued at the valuation cap rather than the new valuation. Their ownership is calculated as their investment divided by the valuation cap, rather than their investment divided by the new valuation. This is the most popular type of the related setting.
Accredited investor
An accredited investor is someone who meets the SEC definition based on their income, assets or professional qualifications. See why Cooley recommends that you make sure your investors are accredited investors on their website.
Financial account
With financial accounts, you can securely store funds, open local accounts, convert currencies, send money, manage expenses and borrow money directly in the Stripe Dashboard.
See also
- Fundraising with SAFEs on Atlas FAQ