A Crowd SAFE is the same as a SAFE — except it has multiple investors in it and has different conversion terms. A SAFE is a sample agreement for future equity. This means that investors give you money right away and receive equity later if certain events occur. In a Crowd SAFE, those “certain events” are an acquisition or IPO. When a company is acquired or goes public, investors have the option to either receive their investment cash back or to have their cash converted into equity in the company. If they choose to convert their investment into equity, that equity will either be sold immediately in the case of an acquisition or can be held onto if the company is going public.

A Crowd SAFE is better than a traditional SAFE because it can incorporate multiple investors in the round and it only converts into equity at an acquisition or an IPO — not a priced round. This means that you keep a clean cap table until you are looking to sell the company or go public.

Stock-back has been proven to increase the CLV of customers by 250% and improve word-of-mouth marketing by 43%. Tryvest is the only equity-based loyalty system for private companies. We help you supercharge your CLV with the ownership economy.

Setting up the legal and technical infrastructure to issue and monitor Crowd SAFEs can cost you thousands of dollars and months of time. We do all the work for you so you can enjoy all the benefits.