# Fundraise with SAFEs

Learn how you can fundraise for your startup by creating, sending, and tracking SAFEs from your Dashboard.

After you incorporate your C corp, you can begin fundraising. With Stripe Fundraising, you create a board consent to approve a round of fundraising, and then send Simple Agreements for Future Equity (SAFEs) to investors. After signing a SAFE, your investors can transfer funds to a *financial account* (You can use a financial account to store, transfer, convert, or spend funds) in your [Stripe Treasury](https://docs.stripe.com/treasury.md) or a bank account of your choice. Stripe Fundraising uses the Y Combinator-drafted templates for [post-money SAFEs](https://docs.stripe.com/atlas/fundraise-with-safes.md#definitions-post-money-safe), supporting either [valuation cap](https://docs.stripe.com/atlas/fundraise-with-safes.md#definitions-valuation-cap) or [discount](https://docs.stripe.com/atlas/fundraise-with-safes.md#definitions-discount) SAFEs.

## Authorize fundraising with board consent 

First, send a board consent document to your company’s board of directors to sign and authorize fundraising using SAFEs.

#### Atlas

1. In the Dashboard, go to **Atlas** > [Fundraising](https://dashboard.stripe.com/atlas/fundraising) and click **Set up fundraising**.
2. Enter the maximum amount you plan to raise with SAFEs. Stripe Fundraising generates a board consent document that your board can sign to approve fundraising up to this amount. [Cooley](https://www.cooley.com/), a leading law firm for startups, drafted the board consent documents. Learn about [how much to fundraise](https://www.ycombinator.com/library/4A-a-guide-to-seed-fundraising#how-much-to-raise).
3. Confirm the list of board members appointed when you incorporated with Atlas. Click **Send for signature**. Stripe Fundraising emails all board members using Docusign to collect their signatures.
4. After all board members have signed, your Dashboard shows that board consent is complete.

You can create draft SAFEs before board consent is complete by clicking **Close** instead of **Send for signature**. If you need to update your maximum fundraising amount, you can repeat the process to generate and sign additional board consent documents.

## Send and sign a SAFE 

After obtaining board approval, you’re ready to generate and send post-money SAFEs to your investors:

1. In the Dashboard, go to **Atlas** > [Fundraising](https://dashboard.stripe.com/fundraising) and click **Create SAFE**.
2. Enter investor information. Input the investment amount. Choose between a [valuation cap](https://docs.stripe.com/atlas/fundraise-with-safes.md#definitions-valuation-cap) or [discount](https://docs.stripe.com/atlas/fundraise-with-safes.md#definitions-discount) SAFE type. Enter whether your investor is an individual or institution and investor details. Because of SEC regulations, law firms recommend confirming your investors are [accredited](https://www.cooleygo.com/can-you-raise-money-from-unaccredited-investors/).
3. Confirm the signer. This person is authorized to fundraise on behalf of your company. The CEO is usually the signer.
4. Choose whether funds should go to your Stripe financial account or an external bank account. Stripe automatically arranges with your investor, otherwise you’ll need to manually arrange sending funds. If you’re [eligible for Stripe Treasury](https://docs.stripe.com/treasury.md#availability), you can use your financial account to receive investment funds.
5. Click **Send for signature**. The SAFE is sent to both the investor and company signer using Docusign. They each receive an email from “Stripe via Docusign” asking them to sign electronically. You receive an email from both Docusign and Stripe when both the investor and the company signer have signed the SAFE.
6. Use the [Fundraising table](https://dashboard.stripe.com/fundraising) to stay updated on the state of your SAFE. Possible statuses are Sent, Signed, Funded, Partially Funded, or Voided.

If you aren’t ready to send a SAFE, save a draft by clicking **Close** instead of **Send for signature**. Your SAFE is saved as a draft, which you can edit and send later.

## Fund your SAFE 

Your investor needs to transfer funds to the funding destination you selected. After you submit an application for Stripe Treasury and receive confirmation, you can use your financial account to receive investment funds. If you select Stripe Treasury as the funding destination for your SAFE, Stripe will send an automatic funding request to your investor with the transfer details.

1. After both parties sign the SAFE, Stripe sends an email to the investor with a link to an investment details page. You also receive confirmation that the investment request was sent.
2. The investor copies the routing and account number or wallet address for your financial account, depending on your currency eligibility and your investor’s preference. The investment details page includes the commitment amount, investment name, and current state of the investment.
3. The investor uses their bank account or custodial wallet to send the entire investment balance, or a partial amount.
4. After you receive funds from your investor, you can go to **Balances** to see the updated balance in your financial accounts. You can also see recent transaction history, including any received investment funds.
5. SAFE is marked as completed. After you receive the entire investment balance, the investment is automatically marked as Funded in the Fundraising table.

### Funding methods

You can use one of the following funding methods to fund your SAFE. For current fees, see [Treasury pricing](https://stripe.com/treasury/pricing).

| Funding method | Typical settlement time | Where to initiate |
| --- | --- | --- |
| ACH | 1 business day | Investor’s bank account |
| Wire transfer | Same day | Investor’s bank account |

If you don’t use Stripe Treasury, you’ll need to provide investors with your bank account details to arrange the transfer manually. After you receive your funds, be sure to manually update the SAFE’s status to Funded.

## Definitions 

### Board Consent 

A board consent is a written document that records the board of directors’ approval of a company action. For SAFE fundraising, it authorizes the company to raise up to the maximum amount stated in the consent.

### Post-money SAFE 

“Post-money” means the SAFE investor’s ownership is calculated as a percentage of the company after their SAFE and all other SAFEs at the time have converted. For example, if you raise a 500,000 USD SAFE on a 5 million USD post-money valuation, your investor owns 10% of the company after conversion.

### Valuation cap 

The valuation cap is the maximum company valuation used to calculate how many shares your investor gets when their SAFE converts into equity. If you raise money at a higher valuation than the valuation cap of a prior SAFE, the investor on that SAFE receives shares in your company as if the company were valued at the valuation cap rather than the new valuation. Their ownership is calculated as their investment divided by the valuation cap, rather than their investment divided by the new valuation. This is the most popular type of SAFE.

### Discount 

A discount reduces the price per share investors receive when a SAFE converts into equity during a future priced round. For example, a 20% discount means the SAFE converts at 80% of the price per share paid by new investors, giving the SAFE investor more shares for the same investment. Unlike a valuation cap, a discount doesn’t set a maximum company valuation or determine the investor’s ownership percentage in advance.

### Accredited investor 

An accredited investor is someone who meets the SEC definition based on their income, assets, or professional qualifications. See why Cooley recommends that you [make sure your investors are accredited investors](https://www.cooleygo.com/can-you-raise-money-from-unaccredited-investors) on their website.

### Financial account 

With [financial accounts](https://docs.stripe.com/treasury.md), you can securely store funds, open local accounts, convert currencies, send money, manage expenses, and borrow money directly in the Stripe Dashboard.