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1

How do I recap a company with a large amount of SAFE's outstanding?

We have several SAFE's as investments in a company.
Virtually all of the capital has been put in by our group. 

What rights do we have as SAFE holders if there are issues or concerns with management actions?

If you were the investor in this entity, how would you approach this situation? 
 
2 See in Base
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To recap a company with a large amount of SAFEs outstanding, you would typically need to convert those SAFEs into equity, usually during a priced round of financing. As SAFE holders, your rights are generally limited until conversion, but you can negotiate for additional rights, such as information rights, through side letters. If you have concerns with management actions, you should: 1. Review the terms of your SAFEs for any specific rights or protections. 2. Engage in discussions with the company’s management to address your concerns. 3. Consider negotiating for board seats or observer rights in the next financing round to gain more oversight. Approach the situation by ensuring clear communication with the company and leveraging your significant investment to negotiate for better terms or protections in future rounds.
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A priced round will convert the SAFEs. In addition, because you're the largest investor, you do have some leverage. Usually, the best thing to do is to hash this out with the founding team 1st. For example, you can get them to agree to do a priced round to convert the SAFEs and to introduce a board as well during this process. 

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