Simple Agreement For Future Equity Canada Tax

In the case of a variable prepaid futures contract (“VPFC”), the buyer pays the seller the purchase price at the time of conclusion of the contract and not at the time of delivery of the good, and a variable amount of ownership is transferred upon conclusion of the contract. A SAFE IS SIMILAR TO A VPFC contract, as the investor purchases equity (in cash or in the provision of services) under a contract with a contractual quantity of real estate that varies depending on the circumstances that will be delivered later. If you use a SAFE with a discount and equity financing with a pre-money valuation to determine the value instead, you need to calculate the discount on the pre-money valuation yourself….

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