Concept · Fundraising and equity

SAFE

Also called: simple agreement for future equity, SAFE note, SAFEs, post-money SAFE, YC SAFE

Simple agreement for future equity. An investor gives the company money now in exchange for the right to receive shares later, usually when the company raises a priced round. It is not a loan: there is no interest and no date it must be paid back.

For example: An angel investor puts money in through a SAFE today. When the company later raises a Series A, the SAFE turns into shares under the terms written in it.

Connects to 10

• Convertible note Concept
• Valuation cap Concept
• Equity Concept
• Priced round Concept
• Angel investor Concept
• Pre-seed Concept
• Pro rata rights Concept
• Accredited investor Concept
• Y Combinator Organization, investor, program
• gener8tor Organization, investor, program

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.