# Safe Agreement (Brazil)
A Safe Agreement (Simple Agreement for Future Equity) is a vital contract for startups and investors in Brazil, enabling investment in exchange for future equity without immediate valuation. This document streamlines early-stage fundraising while complying with Brazilian corporate and securities regulations.
Why Use Signova AI?
- Fast preparation: Generate a fully compliant Safe Agreement in minutes, not days.
- Brazilian legal compliance: Tailored to meet local laws and regulatory requirements.
- No lawyer required: Create a legally sound agreement without costly legal consultations.
- Integrated e-signature: Securely sign and execute the agreement online for immediate validity.
Key Clauses Included
- Investment Amount and Terms: Clearly defines the invested capital and conditions for conversion into equity under Brazilian law.
- Conversion Trigger Events: Specifies events such as equity financing rounds or liquidity events that trigger conversion.
- Valuation Cap and Discount Rate: Sets limits on valuation and discounts applicable at conversion, reflecting Brazilian market practices.
- Investor Rights: Details protections and rights granted to investors, including information rights and participation in future rounds.
- Governing Law and Jurisdiction: Establishes Brazilian law as governing and specifies competent courts for dispute resolution.
- Confidentiality and Non-Disclosure: Ensures sensitive business information is protected during and after the agreement term.
How It Works
- Answer questions: Provide details about your startup, investor, and investment terms through our guided questionnaire.
- AI generates: Our AI drafts a customized Safe Agreement tailored to Brazilian legal standards and your inputs.
- Download & sign: Review, download, and electronically sign the agreement to formalize your investment quickly and securely.
Frequently Asked Questions
Q: Is a Safe Agreement legally recognized in Brazil?
A: Yes, Safe Agreements are widely accepted in Brazil for early-stage investments and comply with local corporate and securities regulations when properly drafted.
Q: Can I convert the Safe into shares automatically during a financing round?
A: The agreement includes specific trigger events for automatic conversion, such as qualified equity financing or liquidity events, ensuring clarity and enforceability under Brazilian law.
Q: Do I need a lawyer to use this Safe Agreement?
A: No. Our AI-generated Safe Agreement is designed to be legally compliant and clear, allowing startups and investors to proceed without immediate legal counsel, though consulting a lawyer is always recommended for complex cases.
Signova generates legal documents | Starting at $4.99