Startup Funding Espresso – Simple Agreement for Future Governance

Simple Agreement for Future Governance

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The blockchain brings new investment structures for ownership.

The Simple Agreement for Future Equity called a SAFE gives the investor ownership in an entity through a warrant.

The Simple Agreement for Future tokens or Equity (SAFTE) gives the investor the right to buy tokens in the future.

The Simple Agreement for Future Governance called a SAFG gives the investor governance rights through their participation in the community.

The SAFG shifts ownership from buying through investment to earning through participation.

The SAFG only gives governance rights to the holder.

This means the holder doesn’t own a stake in the community but rather can vote on policy issues. 

The SAFG is non-transferable and does not earn income. 

This increases the participation in the community for the long term.

Those with the right to vote on governance issues are primarily the users of the network.

This reduces the regulatory compliance burden on the community.

It creates participatory capital where the ones using the network have a say in how the network grows.

It reduces outside interference into the community.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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