
Ask HN: Does a SAFE Constitute a Term Sheet? - jmanooch
I have had a pretty intense disagreement with one of my advisors regarding whether the SAFE constitutes a Term Sheet. My understanding is that it does, and that it makes no sense to supply an additional &#x2F; separate term sheet. Our lawyers (solid ones) indicate a term is not additionally necessary. But the advisor has dug his heels in. Sigh.<p>Anyone with a call on this, esp on that is lawyer-tested?
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walkermchugh
A signed SAFE would equate to a signed financing deal. Asking for a term sheet
after the deal is signed seems... odd. We supply a SAFE summary upon execution
for the investors records along with the executed SAFE.

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jmanooch
SAFE not signed yet, but thanks.

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kidlogic
A Term Sheet is a non-binding document that highlights the details of a
Financing Note (in this case, the SAFE)

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kidlogic
Following up - The advisor is just being lazy and doesn't want to read the
ACTUAL SAFE Note, and would prefer an abridged version (i.e Term Sheet).

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jmanooch
I think that's the thing. Thank you.

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rajacombinator
Of course it’s not necessary. Did you/advisor read the SAFE? Now it’s time to
decide if your “advisor” (investor?) is bringing enough to the table to comply
with his amateurish requests and handholding.

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jmanooch
I've read the SAFE and don't think it makes sense, since the SAFE is clearly
its own term sheet. But the advisor I think IS being lazy by not reading it,
and just wants a summary for investors.

He is very senior and not amateurish, I think the issue is he does not like
SAFEs (says they are not SEC-tested) and thus I think won't read them, and
thinks any deal of any sort without a summary term sheet is not 'serious'.

Thanks.

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jmanooch
[I mean the advisor's comments don't make sense, the SAFE makes good sense.]

