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A Simple Agreement for Future Equity (SAFE) lets startups raise quick funding by promising investors future shares instead of immediate equity. It works like a convertible note but without debt or maturity dates, making it popular among Indonesian tech startups looking to secure early-stage capital.

Under Indonesian investment law, SAFEs convert to equity when specific trigger events occur, such as a priced funding round or company sale. This gives founders flexibility to grow their business without complex valuation discussions or immediate share dilution, while investors get the potential upside of early entry at a discount.

A Simple Agreement for Future Equity makes perfect sense when your startup needs quick capital but isn't ready for a formal valuation. This commonly happens during pre-seed or seed funding rounds in Indonesia's tech sector, where rapid growth potential attracts investors but revenue figures remain uncertain.

Consider using a SAFE when you need to close funding deals faster than traditional equity rounds allow, or when negotiating with angel investors who understand startup dynamics. Indonesian companies often choose SAFEs to maintain flexibility during early growth phases, especially when planning future funding rounds with local venture capital firms.

• Safe Equity Agreement: Features valuation caps and discount rates that determine future share pricing. Indonesian startups typically adjust these terms based on funding stage and investor requirements. Key variations include post-money vs. pre-money valuations, most-favored nation clauses for investor protection, and pro-rata rights that guarantee participation in future rounds. Some include Indonesian-specific provisions for foreign investment compliance and local shareholder requirements.

• Startup Founders: Draft and offer Simple Agreement for Future Equity contracts to raise capital while maintaining control over company valuation and equity structure
• Angel Investors: Provide early-stage funding through SAFEs, typically investing smaller amounts with potential for significant returns
• Legal Counsel: Review and customize SAFE agreements to ensure compliance with Indonesian investment laws and protect both parties' interests
• Corporate Secretaries: Maintain records of SAFEs and handle conversion documentation when trigger events occur
• Investment Platforms: Often facilitate SAFE transactions between Indonesian startups and potential investors

• Company Details: Gather accurate corporate information including registration number, business address, and shareholder structure
• Investment Terms: Define the investment amount, valuation cap, and discount rate for future equity conversion
• Trigger Events: Specify qualifying events that will convert the SAFE into equity under Indonesian law
• Compliance Check: Verify alignment with Indonesian investment regulations, especially regarding foreign ownership limits
• Documentation: Prepare corporate approvals and compile required supporting documents
• Digital Platform: Use our automated system to generate a legally sound SAFE agreement, ensuring all essential elements are included

• Investment Amount: Clear statement of funds provided and any tranched payment schedules
• Conversion Terms: Detailed mechanics for converting the investment into equity, including valuation caps and discount rates
• Qualifying Events: Specific conditions that trigger conversion under Indonesian corporate law
• Shareholder Rights: Future voting and dividend rights upon conversion
• Governing Law: Express choice of Indonesian law and jurisdiction
• Foreign Investment: Compliance with Indonesian investment restrictions and ownership limits
• Termination Rights: Conditions for agreement dissolution and fund return procedures

Simple Agreement for Future Equity (SAFE) differs significantly from an Equity Agreement in several key aspects. While both involve company ownership, they serve distinct purposes in Indonesia's startup ecosystem.

• Timing of Ownership: SAFEs defer equity transfer until a future event, while Equity Agreements create immediate shareholding rights
• Valuation Requirements: SAFEs can be issued without setting a current company valuation, making them ideal for early-stage startups. Equity Agreements require an agreed-upon valuation upfront
• Legal Complexity: SAFEs typically involve simpler documentation and fewer regulatory requirements under Indonesian law, compared to formal equity transfers
• Shareholder Rights: Equity Agreement holders gain immediate voting and dividend rights, while SAFE holders must wait until conversion to exercise these privileges
• Exit Flexibility: SAFEs offer more flexible terms for both parties if the anticipated conversion events don't occur