Working on getting documents ready and the attorney said that we will need a term sheet in addition to SAFE documents. Can someone confirm if this is true, if yes, what goes in the term sheet?
Ask HN: Do we still need a term sheet if using SAFE?
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Re: Ask HN: Do we still need a term sheet if using SAFE?
#2Typically speaking, SAFEs only differ in terms of: (i) the amount invested; (ii) whether there is a discount, cap, or both; and (iii) the amount of the discount/cap/both. If you are doing a round of different SAFEs, you might have a minimum amount of investment per SAFE and a maximum amount for the entire round.
You could put any of that into a term sheet. But you don't need to.