
San Francisco, CA – Early-stage startups utilizing Stripe Atlas are achieving remarkable speed in securing initial funding, with a median time of just seven calendar days from company incorporation to the signing of their first investor Simple Agreement for Future Equity (SAFE). This rapid acceleration in fundraising was highlighted by Jeff Weinstein, a Product Lead at Stripe, who shared insights from an analysis of the first 100 startups raising SAFEs through the platform.
"Most interestingly to me: the median time from company incorporation date to first investor signed SAFE is just 7 calendar days," Weinstein stated in a recent social media post, adding, "Founders are moving at incredible speeds. ⚡" This metric underscores the efficiency gains offered by integrated platforms like Stripe Atlas in the startup ecosystem.
Stripe Atlas streamlines the complex process of company formation and early-stage fundraising for founders globally. The platform assists in incorporating Delaware C-corporations and provides tools for generating, signing, and managing SAFEs, which are drafted in collaboration with leading startup law firm Cooley. These Y Combinator post-money SAFEs with valuation caps are a common instrument for initial startup investments, simplifying the equity process before a formal valuation.
The rapid turnaround time is attributed to Atlas's integrated approach, which allows founders to obtain board consent for fundraising and send SAFEs to investors electronically via DocuSign. This efficiency enables startups to quickly move from legal setup to securing capital, validating their product-market fit, and engaging with investors. The platform's ability to facilitate banking and payment acceptance within days of incorporation further supports this accelerated path to market.
This trend suggests a significant shift in the landscape of early-stage venture capital, where founders can dedicate more time to product development and growth rather than administrative hurdles. The speed observed through Stripe Atlas could lead to increased innovation and a more dynamic startup environment, particularly for entrepreneurs outside traditional tech hubs.