Great content! thanks for sharing the three only scenarios for uncapped SAFE´s. It makes sense. Valuation it is! Gotta polish this one over the weekend! Thanks. Steve
Question? A founder is presenting an uncapped SAFE, stating a Cap Safe agreement implies a potential valuation and would expose key new hires to fanton income tax on signing bonus shares based on this potential valuation which would be much more then current valuation filed with IRS…any experience with this scenario…any work around to this potential risk to new employees?
It really depends! It all depends on what the market is willing to bear for you hence the term, "fair market value." In some industries, it may be $2m. In others $3m, $5m, or even higher. Depends on the team, the market you are going into, unique of the solution, etc.
Towards the very end the host stated “an indication of an unsophisticated investor is being asked ‘what’s your exit strategy’ .” Why is this considered unsophisticated? Don’t investors need to know this?
