Frequently Asked Questions about no collateral based SAFE NFT

The services provided by Orava Pte Ltd are intended to assist startups in raising capital through SAFE agreements and related offerings. While we strive to provide accurate and up-to-date information, Orava Pte Ltd does not guarantee the success of any fundraising campaign, nor does it provide financial, legal, or investment advice. Startups and investors are encouraged to consult with their own advisors before making decisions.

By submitting your details through our website or Google Form, you consent to Orava Pte Ltd collecting and using your information for the purpose of assessing your eligibility for funding and improving our services. Your information will be handled in accordance with our privacy policy and applicable regulations. Orava Pte Ltd will not share your data with third parties without your consent, except as required by law.

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Orava SAFE stands for “Simple Agreement for Future Entitlement.” It is a funding instrument that allows startups to raise capital without issuing debt or losing equity-based voting rights.

Startups can raise between $50,000 and $500,000, with a maximum of 10% dilution against the company’s valuation.

Funding is divided into $100 SAFE-backed certificates, which are tokenized and placed on the blockchain, providing transparency and security.

Tokenization makes SAFE agreements irrevocable, transparent, and enables fractional ownership, making them tradable on secondary markets.

Investors have liquidation priority junior to debt, pari passu with other SAFEs and preferred stock, and senior to common stockholders.

No, Orava SAFE allows startups to retain equity-based voting rights and full control over strategic decisions.

The pre-money valuation is defined by the startup before launching the fundraising campaign on the Orava platform.

If the campaign does not reach its financing threshold, the raised funds are returned to investors, and the campaign is canceled.

SAFE funding are tokenized into NFTs, which can be traded on secondary markets, giving investors the flexibility to liquidate their positions.

No, the terms and conditions are standardized to protect both startups and investors, ensuring clarity and fairness.

Orava SAFE accepts funding in USD, USDC, and USDT, with exchange rates tracked via Binance.

Startups pay an 8% platform fee, along with additional fees such as SAFE preparation, fast preparation, and external funding fees, as applicable.

Investors receive their Cash-Out Amount or conversion to common stock payment before common stockholders, ensuring priority payout.

Yes, startups can run a hidden phase where funding are limited to selected investors before opening to the public.

The campaign duration is determined by the startup but must adhere to Orava’s platform guidelines for effective execution.

Startups need to provide business details, pre-money valuation, campaign goals, and comply with Orava’s due diligence requirements.

SAFE agreements and all key terms are stored on-chain, making them publicly verifiable and tamper-proof.

Once the campaign succeeds, funds are released to the startup, and investors receive NFT-backed certificates representing their SAFE funding.

Yes, Orava SAFE is designed to comply with global regulatory standards, allowing cross-border funding while ensuring AML and KYC compliance.

Startups can apply by filling out the Orava SAFE application form on the Orava.VC website, where details such as project ownership, funding goals, and campaign timelines are submitted for review.

Orava SAFE is designed for startups seeking equity-based fundraising through a secure, tokenised NFT structure. Unlike a SAFT, which focuses on future tokens, or a SAFE+T, which includes both equity and token allocations, Orava SAFE provides a straightforward equity entitlement without obligations related to token issuance or management.

 Orava SAFE prioritises startups that want to maintain equity-based funding without the complexities and risks of token issuance. Many startups either do not require a token for their business model or want to retain flexibility to introduce tokens later, independent of their fundraising.

 Yes, startups can issue tokens in the future if their business model evolves to require it. Orava SAFE does not tie startups to token issuance timelines, allowing them to retain flexibility for future decisions.

 Investors may prefer Orava SAFE because it provides secure equity-related entitlements without the risks tied to uncertain token launches. SAFTs and SAFE+T instruments carry risks related to token market conditions and the necessity for token utility to accrue value.