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 Are these Accurate Offerings?

Kay Griffin's profile image
Kay Griffin posted 03-14-2024 18:36

1. Simple Agreement for Future Equity (S.A.F.E.) Shares:  As RDT’s earliest investors as Advisors, you alone will be offered S.A.F.E. Advisor shares. These shares are I.O.U.’s from RDT to you, promising that when the true strike price of RDT is determined (valuated), you now have part ownership (equity) with a real dollar value that you may choose to sell back to RDT at the strike price, or hold onto for future gains. Plus, for your capital investment you will receive (a) a Valuation Cap (meaning no matter how much higher the share price rises on the day of valuation, your introductory cap price will not be exceeded), meaning you’ll get more for a lot less than future investors, and (b) a 20% Discount on the price of your shares on RDT’s valuation date, again, meaning you’ll get far more because your shares will be 20% less than future investors. Either of which will be to your advantage over those investors who will purchase their shares in the next round of fund-raising in 12-18 months (about 1 and a half years). 


2. Convertible Notes: For those who prefer a more traditional investment approach, as RDT’s earliest investors, we are offering Convertible Notes. These notes are interest-bearing loans contractually due to be repaid on the date of RDT's valuation. For the Convertible Note investor, you will also receive a 20% Discount, and a Valuation Cap. Again, the major difference from a S.A.F.E. is your investment is an interest-bearing loan, to be repaid with interest upon RDT’s valuation.   

If not, how can they be improved. I am confused about whether or not an early seed investor can receive 'both' the cap and the discount.