Document background
The Simple Agreement for Future Equity (SAFE) has become increasingly popular in the Belgian startup ecosystem as an efficient investment mechanism for early-stage companies. This document is typically used when a company needs to raise capital quickly without immediately setting a valuation or issuing shares. The agreement, adapted to comply with Belgian law and EU regulations, provides investors with the right to convert their investment into equity at a later date, usually during a priced equity round. It includes essential provisions required under the Belgian Companies and Associations Code, addresses FSMA regulatory requirements, and typically contains specific terms regarding valuation caps, discount rates, and conversion mechanisms. The document is particularly suitable for startups in Belgium seeking bridge financing or initial investment rounds where traditional equity or debt instruments may be less appropriate.
