The SAF3 is the first web3-optimized SAFE that leverages an NFT-powered payout mechanism to handle liquidity events. It makes secondary transactions seamless for investors by tapping into the transferability of NFTs (still requires txn approval from founder).
It also makes it 10x easier for crypto-native investors and DAOs to diversify into startup equity **without leaving web3 or having to manage shares in web2.
By upgrading the SAFE to be more liquid, we hope to increase access to startup investing for people around the world. If you’d like to learn more about our longterm goals at NextRound, click here.
The SAF3 is free to use and offers a variety of advantages over the standard SAFE. There’s also a minimal amount of ongoing paperwork that’s necessary - all you need is an ETH wallet and USDC. The NFT is what goes on the cap table, not your name. That means all you need to do is to hold the NFT to get paid out on exit or to get tokens during future distribution events. In that way, the SAF3 brings all of the startup investing lifecycle on-chain, making it more efficient and transparent.
Even though the SAF3 NFT lives within web3, the SAF3 document exists in web2 to guarantee that NFT holders get paid during all future liquidity events. It bridges the gap between web2 and web3. If you have any questions, here’s a list of the most commonly asked ones!
Here’s what the flow to invest in a SAF3 looks like:
As long as you’re an accredited investor, you can self-accredit and sign with your wallet.
Send USDC to mint the NFT that acts as an IOU (or derivative) for all future liquidity payments.