• Can non-crypto companies use the SAF3?
  • Yes! The first company that used the SAF3 was a biotech company
• How does the SAF3 compare to other popular fundraising tools?
  • NextRound + the SAF3 is the only set of tools that allows founders and investors to keep all financial components of their fundraise on chain.
• Why wouldn’t we just raise using a standard SAFE? How does this benefit us?
  • The SAF3 benefits founders because it’s more attractive to any investor who wants to keep their funds in crypto
  • Investors can stay 100% in crypto when they invest AND when they get paid out on exit. All proceeds from liquidity events are paid out on chain via smart contracts.
  • The SAF3 allows DAOs and token-only funds to walk away from an investment with a tangible asset (the NFT) and bring private equity on chain
  • And, because the SAF3 is tradeable and more liquid than a SAFE, founders should be able to raise funds at a higher valuation (see liquidity premium)
  • Check this out for a visual graphic of the benefits
• We’re doing a normal round and we don’t plan on ever selling tokens. Can we still use the SAF3?
  • Yes! The SAF3 is like a normal SAFE in that way - you’re raising money in exchange for future equity. The main difference is that investors get pay / get paid out on chain.
• Can the SAF3 be used alongside normal SAFEs, or a normal priced round?
  • Yes! It can be used alongside any other method of fundraising with no issues. It’s a totally separate contractual agreement.
• What would you say to someone who was hesitant to use the SAF3 because it’s new?
  • The SAF3 was create in collaboration with both Latham & Watkins and Cooley, two of the most reputable law firms in the country.
  • It also relies on a lot of the same legal precedents as the SAFE. The two documents are only minimally different.
• Isn’t it strange to allow your investors to dump your equity?
  • Investors can’t dump your equity. Founder’s must approve each transaction of a SAF3. There are no transactions without founder approval
• There’s a DAO that wants to invest in us, but they’re worried they might not be able to enforce the contract and get paid out on exit
  • The SAF3 rests on the same enforcement mechanisms as the SAFE
  • No one gets paid via the NextRound smart contract unless EVERYONE gets paid. That means any of the angels or investment DAOs who invest in a SAF3 (aka the NFT holders) can take a founder to court and EVERYONE benefits
  • Any representative of the DAO or third party can use the physical SAF3 document to take a founder to court and ensure the smart contract is paid out with exit liquidity, just like it’s stated in the document
• What are the KYC requirements for investors?
  • Investors only need to provide their name and accreditation status
• What countries can startups use the SAF3 in?
  • International investors can invest in any US company using the SAF3, but only US and BVI based entities can raise via the SAF3 (at the moment). More jurisdictions to come (Israel, UK, Switzerland are next).
• Where does the money that I raise go?
  • When you spin up a SAF3 via our flow, you’ll be asked to connect a metamask wallet for your company. The funds from the investor are sent directly to that wallet (we are not in the flow of funds at all)