SAFE Note Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 2,788 reviews

Jump to Section

Need help with a SAFE Note?

CREATE A FREE PROJECT POSTING
Post Project Now

What does a SAFE note cost? This is a question often asked by startup companies seeking capital for their business. Let’s explore this question and review some general information about SAFE notes and how they work.

How Much Does a SAFE Note Cost?

A SAFE note, which stands for “simple agreement for future equity”, is a legally binding contract in which an investor agrees to purchase shares in a company some time in the future for an agreed upon price.

SAFE notes are considered a type of convertible security because eventually the note will convert to equity in a company. This type of note is very popular with new startup companies that need to secure investors but due to their age, there is very little financial data to assign value to the company.

When using a SAFE note, a company can postpone its valuation until a later date when more data is available. SAFE notes are less complex than other financial options, and they protect both startup companies and investors by covering potential future events like changes in control, company dissolution, and bankruptcy.

Startup companies understand the importance of SAFE notes so it common for these entities to hire an attorney to help draft the SAFE note to ensure they are written correctly and include all necessary information.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a SAFE note is $557.17.

What’s Included in a SAFE Note?

SAFE notes are one of the least complex convertible notes and are usually less than five pages long and easy to comprehend. Even though these contracts are fairly simple, they must include a few key elements.

  • Discounts. Some SAFE notes include discounts on future converted equity. The discount typically ranges from 10%-30%. Investors who benefit from this feature will be able to purchase shares at discount in the future.
  • Valuation Caps. Valuation caps establish the highest price that can be set when figuring the conversion price. This allows early investors to purchase shares at a less expensive rate than new investors.
  • Most-Favored Nation Provisions. Under this provision, the first investor must be notified of all subsequent investors. If the first investor believes that a newer investor is benefiting from more favorable terms, they can ask for those same terms to be applied to their SAFE note.
  • Pro Rata Rights. Sometimes called participation rights, this provision allows investors to invest extra fund to keep their ownership percentage during future equity financing.

Types of SAFE Notes

The three different types of SAFE notes include:

  • Valuation Cap, No Discount. This is the most commonly used option, and it allows investors to convert their SAFE note at the lower of the priced valuation cap.
  • Discount, No Valuation Cap. Using this type of SAFE note, investors can convert their notes into shares at a discounted rate.
  • Most Favored Nation, No Valuation Cap, No Discount. This note allows investors to adapt new terms for their SAFE notes if they think that newer investors were offered better terms. This SAFE note, however, does not contain a valuation cap or discount.

If you aren’t sure which type of SAFE note is best for your company and your investor, it is recommended that you consult with an attorney. A startup lawyer who has experience drafting and reviewing SAFE notes will know exactly which type of SAFE note is best to achieve the financial goals of your company.

Meet some lawyers on our platform

Gregory B.

52 projects on CC
View Profile

Max M.

105 projects on CC
View Profile

Gregory F.

2 projects on CC
View Profile

Michael K.

58 projects on CC
View Profile

Examples of SAFE Note Projects

SAFE Note Drafting Services

Even though SAFE notes are relatively simple contracts, they are very important and could possibly control a large sum of money. Startups and any other companies who use SAFE notes should seek out a lawyer who offers drafting services to help draft a legally binding and complete SAFE note.

A lawyer will first meet with the company owner to obtain some information about the company, the financial goals, and the possible investors. Using this information, the lawyer will select which type of SAFE note best suits the needs of the company and investor and draft a legally binding contract.

A lawyer who is familiar with SAFE notes will know what provisions need to be included and will ensure the SAFE note abides by all applicable laws and restrictions.

SAFE Note Review Services

In some cases, a company may already have a SAFE note, but they may have some questions or want to know if the note they are using is the best possible option for their business.

These companies should find a business lawyer who offers review services. Instead of drafting a document from scratch, a lawyer can review an already existing contract to ensure it is up to date. The lawyer will go over all the provisions, recommend edits or additions, and explain any terms that the company owners may not understand.

SAFE Note Drafting Cost

The biggest factor that affects what a lawyer charges for drafting a SAFE note is the amount of time they spend on the task. If drafting includes several meetings, a lot of communications, and revisions, the legal fees will be more.

ContractsCounsel’s marketplace data shows the SAFE note drafting costs are $575 across all states and industries.

SAFE Note Review Cost

If a company hires a lawyer to review a SAFE note, they will still incur legal fees for the lawyer’s time, but it will typically be less than drafting fees.

ContractsCounsel’s marketplace data shows the average SAFE note review costs are $499 across all states and industries.

How Do Lawyers Charge for SAFE Notes?

The two most common ways that lawyers charge for their time are hourly rates or flat fee rates.

Hourly Rates for SAFE Notes

When a lawyer uses an hourly rate fee structure, they set an hourly rate for their time and then charge a client each hour spent working on a project or case. The lawyer can also bill for any of their employee’s time spent on the project like associate lawyers or paralegals.

ContractsCounsel’s marketplace data shows the average hourly rate for a business lawyer ranges from $250 - $400 per hour.

Flat Fee Rates for SAFE Notes

When using a flat fee rate structure, instead of billing hourly, an attorney quotes the client a flat fee rate. If the client agrees to the price, they will pay the lawyer up front to begin work and the lawyer will complete the job.

It is important to note that flat fee rates usually only cover specific tasks like drafting documents and review. If the client wishes to have consultations, communications, or ongoing representation, the lawyer may charge more.

ContractsCounsel’s marketplace data shows the average flat fee rate for a SAFE note is $557.17.

Get Help with a SAFE Note

Do you need help with a SAFE note project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Matthew R. on ContractsCounsel
View Matthew
Member Since:
November 6, 2020

Matthew R.

Attorney
Free Consultation
Get Free Proposal
Denver, Colorado
15 Yrs Experience
Licensed in CO, OH
Case Western Reserve University

I am an attorney located in Denver, Colorado with 13 years of experience working with individuals and businesses of all sizes. My primary areas of practice are general corporate/business law, real estate, commercial transactions and agreements, and M&A. I strive to provide exceptional representation at a reasonable price.

Christopher S. on ContractsCounsel
View Christopher
Member Since:
November 6, 2020

Christopher S.

Partner
Free Consultation
Get Free Proposal
Toledo, Ohio
5 Yrs Experience
Licensed in OH
University of Toledo

Chris Sawan is a JD/CPA who practices in the area of business law, contracts and franchising in the State of Ohio.

Elizabeth C. on ContractsCounsel
View Elizabeth
Member Since:
November 23, 2020

Elizabeth C.

Contracts Specialist
Free Consultation
Get Free Proposal
Sarasota, FL
13 Yrs Experience
Licensed in NJ, NY
Quinnipiac University School of Law

As an experienced contracts professional, I offer an affordable method to have your contracts reviewed! With my review of your contract, you can understand and reduce risks, negotiate better terms, and be your own advocate. I am an Attorney, Board Member, and Freelance Writer with a Bachelor of Arts degree, magna cum laude, in Film, Television and Theatre (“FTT”) from The University of Notre Dame. I was awarded The Catherine Hicks Award for outstanding work in FTT as voted on by the faculty. I graduated, cum laude, from Quinnipiac University School of Law, where I earned several awards for academics and for my work in the Mock Trial and Moot Court Honor Societies. Additionally, in my career, I have had much success as an in-house Corporate Attorney with a broad range of generalist experience and experience in handling a wide variety of legal matters of moderate to high exposure and complexity. My main focus in my legal career has been contract drafting, review, and negotiation. I also have a background in real estate, hospitality, sales, and sports and entertainment, among other things.

Elizabeth R. on ContractsCounsel
View Elizabeth
Member Since:
January 20, 2021

Elizabeth R.

Attorney
Free Consultation
Get Free Proposal
Columbus, Ohio
11 Yrs Experience
Licensed in FL, OH
Florida International University School of Law

Elizabeth is an experienced attorney with a demonstrated history of handling transactional legal matters for a wide range of small businesses and entrepreneurs, with a distinct understanding of dental and medical practices. Elizabeth also earned a BBA in Accounting, giving her unique perspective about the financial considerations her clients encounter regularly while navigating the legal and business environments. Elizabeth is highly responsive, personable and has great attention to detail. She is also fluent in Spanish.

Abby V. on ContractsCounsel
View Abby
Member Since:
December 7, 2020

Abby V.

President
Free Consultation
Get Free Proposal
Washington, DC
15 Yrs Experience
Licensed in DC, NJ, NY
Loyola University Chicago School of Law

Abby is an attorney and public policy specialist who has fused together her experience as an advocate, education in economics and public health, and passion for working with animals to create healthier communities for people and animals alike. At Opening Doors PLLC, she helps housing providers ensure the integrity of animal accommodation requests, comply with fair housing requirements, and implement safer pet policies. Abby also assists residents with their pet-related housing problems and works with community stakeholders to increase housing stability in underserved communities. She is a nationally-recognized expert in animal accommodation laws and her work has been featured in The Washington Post, USA Today, Bloomberg, and Cosmopolitan magazine.

Brit B. on ContractsCounsel
View Brit
Member Since:
December 29, 2020

Brit B.

General Counsel
Free Consultation
Get Free Proposal
Remote (company based in Houston)
8 Yrs Experience
Licensed in TX
University of Maryland, School of Law

First in-house counsel for small TX-based company operating in the Middle East. Experienced with drafting, revising, and editing a variety of domestic and international contracts.

Matan S. on ContractsCounsel
View Matan
Member Since:
January 4, 2021

Matan S.

Attorney
Free Consultation
Get Free Proposal
Philadelphia, PA
9 Yrs Experience
Licensed in NJ, PA
Rutgers

Matan is an experienced M&A, corporate, tax and real estate attorney advising closely held businesses, technology start ups, service businesses, and manufacturers in purchases, sales, and other exit strategies. Matan works with founders and first-and-second generation owners to strategically transition businesses.

Octavia P. on ContractsCounsel
View Octavia
Member Since:
January 30, 2021

Octavia P.

Attorney
Free Consultation
Get Free Proposal
Chicago, IL
15 Yrs Experience
Licensed in IL
The John Marshall Law School

I am a business law attorney with over 10 years’ experience and a strong background in information technology. I am a graduate of the University of California Berkeley, a member of the Illinois bar and a licensed lawyer (Solicitor) of England and Wales. I actively partner directly with my clients or indirectly, as Of Counsel, to boutique law firms to streamline business practices and manage legal risks by focusing on essentials such as - business contracts, corporate structure, employment/independent contractor agreements, website terms and policies, IP, technology, and commercial related agreements as well as business risk and compliance guidance.

Sean D. on ContractsCounsel
View Sean
Member Since:
January 25, 2021

Sean D.

Business Attorney
Free Consultation
Get Free Proposal
Elkridge, Maryland
24 Yrs Experience
Licensed in MD
University of Maryland Francis King Carey School of Law

Accomplished and results-driven business attorney with extensive experience in commercial real estate / project finance, commercial transactions, and entity formations, that possesses a winning blend of subject matter expertise, skill in client relationship management, and practical experience. Leverages a unique mix of legal, strategic, and analytical expertise that consistently meets and surpasses client expectations. Specialties: Commercial Real Estate Law, Contract Negotiation, Entity Formation, Joint Ventures, Procurement, Lease/Buy/Sell Transactions, Business Consultations, Team Leadership, and Economic Development

Jonathan D. on ContractsCounsel
View Jonathan
Member Since:
February 8, 2021

Jonathan D.

Principal
Free Consultation
Get Free Proposal
Miami
4 Yrs Experience
Licensed in FL
Florida International University School of Law

Miami-based duly licensed attorney and customs broker with significant experience in various types of supply chain business agreements, as well as experience in entertainment law.

Albert M. on ContractsCounsel
View Albert
Member Since:
February 8, 2021

Albert M.

Attorney
Free Consultation
Get Free Proposal
Woodbury, NJ
19 Yrs Experience
Licensed in NJ
Rutgers School of Law - Camden

I am a New Jersey licensed attorney and I have been in practice for over seventeen years. My practice mainly consists of representing public entities (municipalities, school boards, etc) and businesses, both small and large. In that capacity, much of work consists of drafting, reviewing and revising contracts.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call