Circle In is a digital-first employee benefits platform that provides on-demand access to expert advice for caregiving employees and their managers at every life stage.

Despite having only been founded in 2017, Circle In had already been through an early stage capital raise and for the second capital raising was looking for not just a smarter way to run the process but also to concurrently introduce an Employee Share Option Scheme.  Circle In’s Founders recognised the complexities of the process, how this might impact the cap table and were keen to avoid any dilution of early-stage investors.  Not only did they need expert capital market advice, they also needed a simple way to implement the process.

The FCX platform and team was ideal.  Not only did the platform allow the founders to quickly assess multiple scenarios to consider before deciding on the optimum structure but in the process of doing so and in working closely with the FCX team of capital market experts they adopted an innovative approach called a SAFE note (AKA a Simple Agreement for Future Equity), a Silicon Valley innovation allowing start-ups to structure seed investments without interest rates or maturity dates.

Explainer: A SAFE note works like this – instead of giving an investor a specific number of shares in your company right away, like in traditional investing, you promise them a “right” to get shares in the future when certain agreed trigger conditions are met however the cash is exchanged upfront.

SAFE notes are a way for investors to easily and quickly support your business early on without immediately getting a specific amount of ownership and avoiding the process of determining a valuation. Instead, they get the promise of ownership when your business achieves certain goals. It’s a bit like a reward for believing in your idea and helping you get started.