Pro rata rights are the SAFE investor`s rights to acquire more shares in the company when the company begins a new series of financing cycles or cycles. These rights are exercised only when SAFE has been converted into preferred shares of the company as part of the equity financing. If you run z.B a SAFE before the financing of Series A, the SAFE will be converted into preferential shares of the company in Serie A. With proportional rights, the investor has the right to acquire more shares if the company accepts Series B financing at the same price and on the same terms as Series B. 1 investors, the preferred price per share to offer for equity financing; 2) the preferred share price that must be offered with a discount for equity financing; 3. the price per share determined by a pre-negotiated valuation ceiling (see below); or four. Option 2 or Option 3 below. Some issuers offer a new type of security as part of some crowdfunding offers they have called safe. The acronym means Simple Agreement for Future Equity. These securities are risky and very different from traditional common shares. As the Securities and Exchange Commission (SEC) states in a new investor newsletter, despite its name, a SAFE offer cannot be "simple" or "safe." For a growing start-up, the company will probably find more money. As a start-up investor, I`m not interested in being reimbursed.

The risk associated with a start-up is high, so I hope that in the event of a high risk, there will be a potential for a strong upward trend. That is why I would like my SAFE to be "converted" to equity at a later date. Basically, as soon as someone decides to invest in the company in a "price cycle", my SAFE becomes shares of the company. Equity financing is defined in SAFE as "bona fide transaction or series of transactions with the main purpose of raising capital, pursuan weens which the Company issues and sells Shares Preference at a fixed pre-money valuation." Unlike a convertible bond, there is no threshold or minimum amount for equity financing.