The below are terms that can be potentially found in a SAFE, you may see all or some of them.
Price per share
The price per share shows the cost per share at the time the investment converts into equity shares or cash. This means that when a trigger event happens, investors receive equity shares or cash as if they had purchased shares at the time of the SAFE purchase at the specified price.
The valuation cap specifies the maximum valuation at which the investment converts into equity shares or cash. This means that when a trigger event occurs, investors receive equity shares or cash at the valuation cap price—no matter the valuation at which the company sells. Therefore, the higher the valuation of the company at the time of sale, the greater the investor’s return.
If a trigger event for the company occurs, the discount provision gives investors equity shares (or equal value in cash) at a reduced price relative to what others pay at IPO or for the company’s acquisition. They get a larger advantage compared to investors not using Equity Portal Inc.