Pulley offers a tool that allows founders to seamlessly draft new SAFE documents, obtain board approvals, and then send them directly to investors for signatures—all within a single workflow that ensures you stay compliant when fundraising. Let's dive into how you can leverage this feature.
To get started, head to Fundraising in the left hand navigation.
This page will show any SAFEs you previously signed in Pulley. You can also import a SAFE signed offline from here, or start a brand new SAFE in Pulley.
Creating a new SAFE is a 3-step process that starts with adding a new set of terms for SAFEs. This will serve as a "template" in Pulley that you can use later on to issue SAFEs with.
Add a new set of Terms
The first time you use a new set of terms (Valuation cap, Discount, etc.), you have to add them as a set of terms in Pulley by clicking New Fundraising Terms.
You will then be asked to specify your terms. Notably, you are also required to input the total amount you expect to raise using these terms. It can be an approximate value if you're unsure, and we recommend picking a number on the higher end in those cases.
Get Board Approval
Now that you have your set of terms, you need to get them approved by the Board of Directors. The first time you do this, you would start by adding your board members' names and emails.
Then, you can generate the document in Pulley, or upload one of your own if you already executed the approval or wish to do so outside of the platform.
Note: Each set of terms needs to be approved only once. So, as long as you are issuing SAFEs from a previously approved set of terms, you don't need to get a new approval each time.
Once sent, each Board Member will receive a Task to sign the new Approval, appearing as a Clipboard icon on the top right of the screen, next to their account name:
Issue the SAFEs
Once all of the Board's signatures are collected, the Terms will appear on the Raise with SAFEs tab as Signed, and can now be used to issue SAFEs.
To do so, you would click on the terms to expand the details, and then use the Issue SAFE button:
In the next page, you would enter the investor's name and email, as well as their invested amount. From here, you can also preview both the email and the document the investor will be sent.
When ready, click "Send SAFE to Investor" to collect the signatures.
Note: This action will also prompt signature collection from the company signatory, and show the SAFE on your Pulley cap table.
Last steps: Tracking signatures and funds
Once added to the Cap Table, Pulley will track the signature collection and update the status and the documents automatically as each party signs.
There is also a status column for tracking when the funds have been received, but this must be manually updated by a company admin by using the three-dot icon once the investor sends the funds to the company.
Once the signatures and funds are complete, that marks the end of the workflow. You've successfully raised funds using SAFEs without the need for a lawyer. Congrats!
If you run into any issues, have any questions or feedback, please reach out to support@pulley.com, and we will be glad to assist.