What are our options as a startup at this point if we don't want to work with this investor ? The investor has a fully signed SAFE (after doing due diligence), but just hasn't sent the funds.
We have revoked that investor's access to even see our wire details at this point because we don't want to work with this investor if it can be avoided. So if this 'investor' is never able to actually send the funds in a far out future, what happens to that signed SAFE ? How does it get revoked or expire in the absence of funds being transferred ?
The first line of the safe states "in exchange for payment by [Investor] of [$], on or about [date of safe] ... ." We drafted this line specifically to ensure that the parties understand that money MUST be exchanged for the safe to be valid. Without payment there is no "consideration," which means there is no valid contract.
We decided that picking a hard date for "expiration" of an unfunded safe creates its own set of problems, so the safe is effective "on or about" the same date it is signed. Opinions can differ on the distance between "on" and "about," but we think its reasonable that "on or about" means just 1-2 days. Investors should not be signing safes if they don't have the money to invest within that time frame.
A suggested course of action for OP's situation is to send the investor a written notice that the safe is terminated because there was no exchange of money on or about the date the safe was signed, as provided in safe. Take steps to ensure the notice is sent to whatever contact addresses you have for the investor (email, physical, email of the investor's legal counsel (if there is one). Keep a copy of the written termination notice and proof that it was sent.
Then probably best not to do business with that investor again!
In particular it might be problematic that you have actively worked to prevent the investor from paying you. You definitely need to talk to your lawyer about how to resolve this in a way that protects your company from an ugly, messy lawsuit down the road.
Having said that: The SAFE is a contract. The contract states in the first line "in exchange for the payment by [Investor Name]". If the investor doesn't make the payment, then the contract can be voided for cause. You should be able to give the investor notice that you are terminating the contract for cause (lack of payment).
But again, talk to your lawyer.
The investor never transferred the funds to the company, using what they knew about the company's cash-flow situation to purposely drive the target company into bankruptcy to gain control of the company's assets (and past payment stream, but that's another story) in bankruptcy court using preferential terms guaranteed them in the contract.
Normally the SAFE is dated on or about the time of the wire transfer
Talk to a lawyer. My guess is you could let them know that a safe is issued in return for funding and given they did not fund promptly you've elected to go elsewhere.
Probably be good if the safe was updated (void after 5 business days if no funding received) to be explicit for everyone.