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A Simple Agreement for Future Tokens (SAFT) lets Pakistani startups raise funds by promising investors future cryptocurrency tokens once their blockchain platform launches. It works like an advance purchase agreement, giving investors early access to tokens at preferential rates while helping companies secure development capital.

Under Pakistani securities laws, SAFTs must comply with the Securities and Exchange Commission's regulatory framework. These agreements protect both parties by clearly outlining token distribution terms, vesting schedules, and investor rights. They've become increasingly popular among local tech startups exploring blockchain solutions, especially in fintech and digital services sectors.

Consider using a Simple Agreement for Future Tokens when your Pakistani startup needs early-stage funding for blockchain development but isn't ready to launch tokens immediately. This agreement works perfectly for tech companies building decentralized platforms who need to secure investor commitments while staying compliant with SECP regulations.

Use SAFTs specifically when raising capital from sophisticated investors who understand blockchain technology and cryptocurrency risks. The agreement helps protect both parties during the development phase, setting clear expectations about token delivery, pricing, and vesting schedules. It's particularly valuable for fintech startups planning to launch regulated digital assets in Pakistan's emerging crypto ecosystem.

• Basic Token Rights SAFT: Used by early-stage blockchain startups, offering straightforward token allocation without special privileges
• Preferred Token Rights SAFT: Includes additional investor protections like anti-dilution and voting rights, common in larger funding rounds
• Regulated Digital Asset SAFT: Specifically structured to comply with SECP's digital asset regulations, including KYC/AML provisions
• Industry-Specific SAFT: Tailored for sectors like DeFi or NFT platforms, with customized token utility and distribution terms
• Hybrid SAFT: Combines token rights with traditional equity elements, popular among Pakistani fintech companies seeking mixed funding

• Blockchain Startups: Tech companies developing token-based platforms use Simple Agreement for Future Tokens to secure early funding while building their product
• Angel Investors: High-net-worth individuals and investment firms seeking early access to cryptocurrency tokens at preferential rates
• Legal Counsel: Corporate lawyers specializing in digital assets who draft and review SAFTs to ensure SECP compliance
• Compliance Officers: Internal team members monitoring token distribution and regulatory adherence
• Technology Accelerators: Innovation hubs and incubators facilitating SAFT-based funding rounds for Pakistani blockchain ventures

• Project Details: Document your blockchain platform's technical specifications, token economics, and development timeline
• Investor Profile: Gather investor KYC information, accreditation status, and investment capacity as per SECP requirements
• Token Metrics: Define token pricing, distribution schedule, vesting periods, and total supply allocations
• Compliance Check: Review current Pakistani cryptocurrency regulations and SECP guidelines for digital asset offerings
• Agreement Structure: Our platform helps generate a legally sound SAFT template, customized to your specific token offering and compliance needs
• Internal Review: Have your technical team verify token specifications and distribution mechanisms before finalizing

• Token Details: Clear description of token features, utility, and technical specifications under SECP guidelines
• Purchase Terms: Investment amount, token price, and delivery conditions upon platform launch
• Distribution Schedule: Specific timelines for token issuance and vesting periods
• Investor Rights: Access privileges, voting powers, and transfer restrictions during lock-up
• Risk Disclosures: Comprehensive overview of project, market, and regulatory risks
• Governing Law: Explicit reference to Pakistani jurisdiction and SECP compliance requirements
• Termination Clauses: Conditions for contract cancellation and refund mechanisms

A Simple Agreement for Future Tokens (SAFT) differs significantly from a Simple Agreement for Future Equity (SAFE) in several key aspects, though both are investment instruments used by Pakistani startups. While SAFTs promise future cryptocurrency tokens, SAFEs offer future equity shares.

• Investment Focus: SAFTs specifically target blockchain projects and token-based platforms, while SAFEs are used by traditional tech startups seeking equity financing
• Regulatory Framework: SAFTs must comply with SECP's digital asset regulations, whereas SAFEs fall under standard corporate investment rules
• Delivery Mechanism: SAFTs convert to tokens upon platform launch, while SAFEs convert to equity during qualifying funding rounds
• Investor Rights: SAFT holders receive specific token utilities and privileges, compared to SAFE holders who gain traditional shareholder rights
• Risk Profile: SAFTs carry additional technology and regulatory risks unique to cryptocurrency projects, beyond typical startup investment risks