We frequently find ourselves discussing old vs new–Web 2.0 vs Web 3.0., Centralization vs Decentralization vs True Decentralization… you get the gist. We have another one to add to the list: SAFE vs Rolling SAFE.
Traditionally, startups have used investment instruments like convertible notes (debt instrument), KISS notes (Keep It Simple Security), and SAFE notes.
A SAFE agreement is also known as a Simple Agreement for Future Equity. This investment vehicle was created by Y Combinator for early-stage fundraising.
According to the SEC, a SAFE is defined as,
“An agreement between you, the investor, and the company in which the company generally promises to give you a future equity stake in the company if certain trigger events occur.”
As Web 3.0 and blockchain technology continues to fuel the digital economy, we now have another avenue for fundraising: the Rolling SAFE.
The Rolling SAFE is an innovation by Fairmint on the SAFE agreement. As defined by the innovators:
We believe that the Rolling SAFE is the future of fundraising and that’s why we’ve launched our Seed fundraising campaign on Fairmint. Through Fairmint, an Ethereum-based smart contract is created for the rolling SAFE, and then tokens are created–this is called ‘Tokenization’.
Why Tokenize Thrivacy?
We believe that a tokenized offer will resonate with our stakeholders. This is our form of W3 stakeholder capitalism. Tokenization offers the unique selling proposition of non-traditional participation in the growth of Thrivacy and real-time visualizations of business momentum and investment traction. With the Rolling SAFE, bolder investors are rewarded with lower prices.
The Rolling SAFE streamlines our fundraising, freeing up our time to focus on what's important: our business and serving customers. We can now turn our business momentum into fundraising momentum, providing it with more and more funds as we grow–as it should be!