iSafe Notes
iSAFE Notes
iSAFE (India Simple Agreement for Future Equity) Notes are a flexible way for startups to raise early-stage capital without immediately fixing valuation. Investors give funds today, and in return, they receive a right to future equity—usually at a discount or valuation cap—when the company raises its next priced round. iSAFE Notes simplify documentation and speed up fundraising, but they still need proper agreements, board approvals, and MCA/FEMA compliance.
We help you structure, issue, and comply with all requirements for iSAFE Notes so your fundraising stays clean and investor-ready.
What we do
Structure iSAFE terms (valuation cap, discount, conversion triggers)
Draft the iSAFE Agreement and supporting documents
Coordinate with valuers if any pricing inputs are needed
Prepare board and shareholder approvals
File required forms with MCA for allotment (PAS-3 when converted)
Handle FEMA filings for foreign investors (if applicable)
Maintain cap table impact and conversion records
Support during future fundraise and due diligence
Why this matters
Even though iSAFE Notes are simpler than equity or CCPS, they still affect ownership and future valuation. Poorly drafted terms or missed filings can create disputes with investors or compliance gaps during audits or future funding rounds.
Frequently Asked Questions
A contractual instrument where investors provide capital today in exchange for future equity, usually triggered during the next funding round.
They avoid immediate valuation negotiations, reduce paperwork, and help close rounds faster.
No. Dilution happens only when the notes convert into equity during a future round.
Not at the time of issuance. However, conversion requires valuation and compliance with pricing guidelines.
Board approval is essential. Shareholder approval may be required depending on structure and Articles.