Invest in the Future of Bone Health

A SAFE (Simple Agreement for Future Equity) is the most common instrument for early-stage investing. When you invest via a SAFE, you are not purchasing equity immediately. Instead, your investment converts to equity at the next priced funding round, typically at a discount (20%) to the price paid by later investors, subject to a valuation cap. This means early investors get more shares per dollar invested.

In Round 1, we open a 2-year investment window (2026-2028). Investors contribute at any time during this period. When the round closes, each investor's percentage is determined by their contribution relative to the total pool. For example, if the total pool raises $2M and you invested $100K, you hold 5% of the angel allocation. The larger your contribution, the greater your stake.

Your ownership percentage in Round 1 equals your investment divided by the total angel pool at close of the 2-year window. This percentage then determines your proportional allocation in Round 2 and your equity stake when the SAFE converts. The 20% SAFE discount at conversion means you effectively receive equity at a 20% lower valuation than Round 2 investors.

Dividends are applicable only to Rounds 2 and 3, where investors receive preferred stock with cumulative dividend rights (8% for Round 2, 6% for Round 3). Round 1 (Angel/SAFE) does not include dividend rights. Dividends accrue annually and are paid when the company is profitable and the board approves distributions.

At IPO (targeted for 2030), all preferred stock converts to common stock on a 1:1 basis. Investors can then sell shares on the public market. Early investors benefit from having entered at significantly lower valuations. SAFE holders from Round 1 convert at the most favorable of their discount rate or valuation cap.

Securities purchased in early-stage rounds are generally illiquid. Under Regulation Crowdfunding, SAFE securities are subject to a one-year holding period before they can be transferred, with limited exceptions. There is currently no secondary market for FBH shares. Investors should be prepared to hold their investment for an extended period (typically 5-10 years).

Round 2 is exclusively available to investors who participated in Round 1 (Angel Round). Your allocation in Round 2 is proportional to your Round 1 contribution percentage. For example, if your Round 1 investment represented 5% of the total angel pool, you have the right to invest up to 5% of the Round 2 target raise.

Round 1 (Angel): $5,000 minimum. Round 2 (Seed): $10,000 minimum. Round 3 (Series A): $50,000 minimum. Non-accredited investors in Round 1 are subject to annual investment limits under Regulation Crowdfunding based on their income and net worth.

The calculator shows three scenarios: Pessimistic (8% CAGR), Average (24% CAGR), and Optimistic (40% CAGR). For context, the S&P 500 averages ~10% annually, while top-performing health-tech startups can achieve 30-50%+ growth. The scenarios diverge significantly over 5 years — this illustrates the inherent uncertainty in early-stage investing. Only invest what you can afford to lose.