ContractsSAFEIllinois
ILMidwestEmployee-FriendlyMedium Risk

Simple Agreement for Future Equityin Illinois

A Y Combinator-developed instrument giving investors the right to receive equity in a future priced round, without a maturity date or interest rate. Illinois's employee-friendly legal climate creates specific considerations for SAFE drafting and enforcement.

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Legal Climate
Employee-Friendly
Non-Competes
Restricted
Governing Law
Popular
Key City
Chicago

Illinois Contract Law

Key Legal Fact

Illinois Freedom to Work Act (2022) prohibits non-competes for workers earning under $75,000 and non-solicitation for those under $45,000.

Notable SAFE Law

Illinois requires employers to provide at least 14 days to consider non-compete agreements before signing.

Key Clauses to Review

1
Valuation Cap
Requires Illinois-specific drafting under employee-friendly legal standards.
2
Most Favored Nation Clause
Requires Illinois-specific drafting under employee-friendly legal standards.
3
Pro-Rata Rights
Requires Illinois-specific drafting under employee-friendly legal standards.
⚠ Common Issue
SAFE stack dilution from multiple uncapped SAFEs at low cap

Major Industries in Illinois

FinanceManufacturingAgricultureTechnology

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