More and more of our start-up clients work internationally, cultivating talent and resources from countries around the globe. So why should their financing sources be limited to the U.S.?
We’ve written previously about ways start-ups can customize Y Combinator’s simple agreement for future equity (SAFE). We’re now open-sourcing the iteration of the SAFE we start with when founders are talking with sophisticated angels—domestically and abroad.
Our Regulation S-compliant SAFE is intended to allow a start-up to take advantage of two exemptions under the Securities Act of 1933: Regulation D and Regulation S (which applies to offshore issuances). We believe this extra exemption offers greater flexibility to founders and investors alike.
Keep in mind that our Regulation S-compliant SAFE, like all form templates, contains a selection of terms that may or may not be suitable for any particular transaction. When customizing our form, you should consult with counsel to discuss the availability of the Regulation S exemption, confirm that any sale complies with applicable foreign securities laws, and ensure that the final document reflects the desired commercial arrangement.
Consider this a first step towards opening up venture financing to the global community.