This document outlines model clauses for due diligence arrangements and funding agreements related to eSafety for start-ups. It addresses various Environmental, Social, and Governance (ESG) issues, focusing on online harms such as image-based sexual abuse, cyber-bullying, harassment, violent content, and terrorist extremism. The report strongly encourages start-ups to undergo the eSafety assessment tool to identify and address potential gaps. Additionally, it provides pre-conditions for funding agreements, covering policies, staffing, training, and external communication.

The due diligence section offers two model clauses for investors to consider before funding a start-up. The first requires completion of the eSafety Assessment Tool, with results shared with the investor. The second addresses gaps in online safety measures, urging resolution between the start-up and investor before proceeding with funding.

Seven example clauses are provided as pre-conditions for funding agreements. These include having a formal safety review process, incorporating safety into corporate values, having internal policies addressing online harms, implementing effective moderation practices, and having processes to detect and address illegal conduct. The staffing/personnel section specifies clauses requiring designated personnel for ‘Safety by Design’ measures and trained staff responsible for user safety.

The training recommendation suggests induction and annual training for all staff on online harms and user safety. External communication is addressed through five recommended clauses, outlining what start-ups should provide or consider in their communication with users, including clear public guidance, user-manageable safety tools, complaint-handling processes, and regular communication about safety policies.

The key recommendations for investors include considering and tailoring the provided model clauses for a robust eSafety framework in start-ups. For start-ups, the recommendations involve familiarising themselves with the report, tailoring safety measures and policies accordingly, completing the eSafety assessment tool, incorporating ‘Safety by Design’ measures, having policies for dealing with online harms, effective monitoring and moderation practices, designated personnel, and providing regular guidance to users.

In essence, the document aims to guide both investors and start-ups in fostering a secure online environment by implementing comprehensive eSafety measures.