Canadian Safe Term Sheet

Canadian Simple Agreement for Future Equity Template with Educational Notes attached to help you.

Original Best Practice:  Safe (Simple Agreement for Future Equity) Financing Documents  by Y Combinator

Inspired by the SAFE made by Y Combinator, this has been created with added discount, cap, and maturity date so that it would be better suited to a Canadian market.

It is a quick and straightforward agreement
Similarly to a convertible loan, it favors the company
Most effective in an active market with potentially successful startups
In certain regions it can help with gaining a tax credit

The deal is open-ended sometimes leading to the investor being left waiting around
If the entrepreneur does not have sufficient knowledge on structure, the deal can be used in an inappropriate way
Some formats of this deal may not function in Canada

*Originally shared on NACO Canada's website*

This Best Practice includes
1 Downloadable Canadian SAFE Template, 1 Educational Notes PDF

Naco Canada offers you this Best Practice for free!

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