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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's gaining popularity in Danish tech hubs as a faster, simpler alternative to convertible notes, though it's still less common than traditional investment tools under Danish company law.

The agreement converts to equity when specific triggers occur, like a priced funding round or company sale. For Danish startups, SAFEs offer flexibility without the immediate need to value the company or issue shares - though founders should note that these agreements still fall under Danish securities regulations and require careful structuring to comply with local corporate governance rules.

Use a Simple Agreement for Future Equity when your Danish startup needs quick capital but isn't ready for a formal valuation. It's particularly valuable during early-stage fundraising rounds where setting a precise company value might undervalue your potential or complicate future funding efforts.

This tool works best for tech startups seeking seed funding between 100,000 and 2 million DKK, especially when dealing with angel investors familiar with SAFE agreements. Danish companies often turn to SAFEs when they need to close deals quickly, want to postpone valuation discussions, or aim to maintain flexibility in their cap table structure while complying with local securities regulations.

• Valuation Cap SAFE: Most common in Danish startups - sets a maximum company value for converting investment to equity
• Discount SAFE: Offers investors shares at a reduced price compared to the next funding round, typically 10-30% lower
• MFN (Most Favored Nation) SAFE: Automatically gives investors the best terms offered to other SAFE holders
• Pre-Money SAFE: Calculates ownership based on shares before new funding, popular among Danish angel investors
• Post-Money SAFE: Determines ownership using post-investment valuation, providing clearer equity stakes upfront

• Startup Founders: Create and issue SAFEs to raise capital quickly without immediate equity dilution or complex negotiations
• Angel Investors: Provide early-stage funding through SAFEs, often in amounts between 100,000 to 1 million DKK
• Corporate Lawyers: Draft and review SAFE agreements to ensure compliance with Danish securities laws and protect client interests
• Business Accelerators: Often recommend SAFEs to portfolio companies and help standardize terms for their startup networks
• Financial Advisors: Guide both investors and founders on SAFE terms, valuations, and conversion mechanisms

• Company Details: Gather current capitalization table, corporate registration number (CVR), and articles of association
• Investment Terms: Define investment amount, valuation cap or discount rate, and conversion triggers
• Investor Information: Collect legal name, CPR/CVR number, and contact details of all participating investors
• Timeline Planning: Set clear dates for investment transfer and documentation deadlines
• Compliance Check: Verify agreement aligns with Danish securities regulations and corporate bylaws
• Document Generation: Use our platform to create a legally-sound SAFE that includes all required elements under Danish law

• Party Information: Full legal names, addresses, and registration numbers of company and investors
• Investment Terms: Specified amount, valuation cap or discount rate, and price per share calculations
• Conversion Mechanics: Clear triggers for equity conversion, including qualifying financing rounds and exit events
• Rights Declaration: Investor voting rights and information access privileges under Danish corporate law
• Securities Compliance: Statements ensuring alignment with Danish financial regulations
• Governing Law: Explicit choice of Danish law and jurisdiction for dispute resolution
• Signature Block: Dated signatures from authorized representatives of all parties

A Simple Agreement for Future Equity (SAFE) differs significantly from an Equity Agreement in several key aspects under Danish law. While both documents deal with company ownership, their timing, structure, and legal implications vary considerably.

• Investment Timing: SAFEs delay equity transfer until future events, while Equity Agreements create immediate ownership rights
• Valuation Requirements: SAFEs can be issued without setting a company valuation, whereas Equity Agreements need a defined share price and company value
• Legal Complexity: SAFEs typically use simpler terms and fewer negotiation points, making them faster to execute than full Equity Agreements
• Shareholder Rights: Equity Agreements grant immediate voting and dividend rights; SAFE holders must wait until conversion to receive these privileges
• Regulatory Framework: Under Danish law, Equity Agreements require more extensive corporate governance documentation and shareholder registry updates