Glossary

Software as a Service (SaaS) is a cloud-based software delivery model where software is made available to users through the internet, typically on a subscription basis. Instead of downloading and installing software on a local computer or server, SaaS applications are hosted and managed by a third-party provider who provides access to the software over the internet. SaaS is a popular delivery m...

A SAFE, or Simple Agreement for Future Equity, is a financial instrument used in early-stage investing. It is a type of convertible security that allows startups to raise funds quickly without having to determine a valuation upfront. In a SAFE, an investor provides funding to a company in exchange for the right to receive equity in the company at a future date, typically upon the occurrence of a s...

A SAFE (Simple Agreement for Future Equity) is an agreement between an investor and a company that allows the investor to invest money in the company in exchange for the right to receive equity in the future, typically in a future financing round or acquisition. A SAFE may include a valuation cap and discount to incentivize early investment. A valuation cap is a maximum price at which the SA...

The Securities and Exchange Commission (SEC) is a U.S. government agency responsible for regulating the securities markets and protecting investors. It was established in 1934 by the Securities Exchange Act, which gave the SEC broad authority to oversee all aspects of the securities industry, including the trading of stocks, bonds, and other securities. The SEC’s main goals are to ensure that...

Software license is a legal agreement that defines the terms and conditions under which a user can use a particular software program. It is a contract between the software publisher (licensor) and the user (licensee) that sets out the rights and restrictions associated with the use of the software. Software licenses typically include provisions such as the scope of permitted use, the number of ...

A Share Purchase Agreement (SPA) is a legal contract that governs the sale and purchase of shares in a company. It sets out the terms and conditions of the sale, including the price, the number of shares being sold, any conditions of the sale, representations and warranties made by the seller, and any post-closing obligations of the parties. The SPA is typically signed by the buyer and the sell...

A Stockholders Agreement (STA) is a contract between the shareholders of a company that outlines their rights, obligations, and restrictions related to their ownership of company stock. The agreement sets out the rules governing the relationship between the shareholders and the company, including voting rights, restrictions on the transfer of shares, and how to handle disputes among shareholders. ...