ContractsSAFEMaryland
MDMid-AtlanticEmployee-FriendlyMedium Risk

Simple Agreement for Future Equityin Maryland

A Y Combinator-developed instrument giving investors the right to receive equity in a future priced round, without a maturity date or interest rate. Maryland'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
Moderate
Key City
Baltimore

Maryland Contract Law

Key Legal Fact

Maryland prohibits non-competes for employees earning under $15/hour or $31,200 annually.

Notable SAFE Law

Maryland HB 1200 (2019) banned non-competes for low-wage workers and required clarity in remaining agreements.

Key Clauses to Review

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

Major Industries in Maryland

GovernmentHealthcareTechnologyDefense

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