ContractsSAFENew York
NYNortheastEmployee-FriendlyMedium Risk

Simple Agreement for Future Equityin New York

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

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Legal Climate
Employee-Friendly
Non-Competes
Enforced
Governing Law
Very Popular
Key City
New York City

New York Contract Law

Key Legal Fact

New York applies strict "employee choice doctrine" — must choose between severance or non-compete enforcement.

Notable SAFE Law

New York courts apply four-part test and regularly decline to enforce non-competes they deem unreasonable.

Key Clauses to Review

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

Major Industries in New York

FinanceMediaTechnologyReal Estate

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