Fundraising
SAFE
Also known as Simple Agreement for Future Equity
A SAFE, or Simple Agreement for Future Equity, is an investment instrument giving an investor the right to receive equity in a future priced round, usually with a valuation cap or discount. A SAFE is not debt and carries no interest or maturity date.
In plain terms: Money now, shares later, without agreeing a valuation today.
Why it matters
The standard early-stage instrument in US startups because it avoids negotiating a valuation before there is anything to value. Stacking several SAFEs with different caps can produce more dilution than founders expect — model the conversion before signing the next one.
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