ContractsSAFERhode Island
RINortheastEmployee-FriendlyMedium Risk

Simple Agreement for Future Equityin Rhode Island

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

Rhode Island Contract Law

Key Legal Fact

Rhode Island prohibits non-compete agreements for non-exempt employees under the Noncompetition Agreement Act.

Notable SAFE Law

Rhode Island's 2020 Act restricts non-competes to highly compensated workers in specialized roles.

Key Clauses to Review

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

Major Industries in Rhode Island

HealthcareManufacturingEducationFinance

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