Telstra-backed accelerator muru-D Singapore is has come up with a new financing instrument for the 10 startups part of its September batch. Termed as Simple Agreement for Future Equity (SAFE), it offers an agreement that provides investment to the firm on a convertible note which converts to equity when the startup does its first post-program qualifying raise at the valuation of that raise.
Founded in 2013 and backed by Telstra, muru-D operates in three locations— Sydney, Singapore and Brisbane. The Australia-based accelerator, in its six-month accelerator program, provides $43,450 (S$60,000) in seed capital to the participating startups.
Talking about the introduction of SAFE, Craig Dixon, Entrepreneur in Residence at muru-D Singapore, in an official press statement, said, complex terms and agreements might be expected between larger entities, however, they may not be necessarily appropriate for statups. He adds,
These new terms put muru-D’s funding structure in line with global best practice, ensuring that our startups are getting the best deal possible and can focus on growing to become sustainable global businesses.
Craig further mentions that SAFE will enable muru-D to attract both early and later stage startups, which he believes their program will continue to add considerable value to.
The participating startups will get business support, access to a co-working space in Singapore’s central business district, a guided trip to Silicon Valley and coaching from Telstra experts, during the six-month program. Till date, 17 startups, hailing from Southeast Asia, have graduated from the accelerator’s first two cohorts. The Telstra-backed accelerator mentions that eight startups from muru-D Singapore’s second cohort had collectively gained 12,000 new customers and generated revenues in excess of $216,000 (S$300,000).
