How to initiate a SAFE financing
With the investor-led SAFEs financing feature, investors can initiate SAFEs issuance, generate documents, and send SAFEs for companies to sign while tracking them entirely through Carta.
This automated process saves both investors and founders time and the burden of tracking and closing the funds.
Navigate to Tools and Services > SAFE financings.
Click Send SAFE in the upper right corner.
For the Cohort dropdown, select Create a cohort. If applicable, select a Signature block. The preview will be available to the right of the selected information.
Select a SAFE document template and SAFE type. Carta offers comprehensive SAFE documents as well as Y Combinator's Post-Money.
Preview the SAFE document any time during the workflow by clicking the magnifying glass.
Click the icon in the top left corner to download and review, if needed.
Input all applicable terms for the Financing information section. If applicable, add a Pro Rata Agreement Side letter.
Enter the Company information. It is the Company’s due diligence to check and make sure all information is accurate. Bulk import multiple companies with our .xls spreadsheet and add an optional email message. When all the information has been added, click Send SAFEs.
An email notification will be sent to the Company as the SAFE status updates to Awaiting Company Review.
Company signatories are directed to a review page where they will be able to view and download SAFE documents and upload relevant Company information before signing. Click Next: Sign SAFE to proceed.
Investors and companies are notified to sign the SAFE. Once both parties have signed, SAFE status changes to Awaiting Funding.
Investors receive the following email:
Click the three dots to the right of the SAFE and select View funding instructions.
When the Company receives funds and marks SAFE with Funds Received, the SAFE is issued and automatically updated on your ledger.