Simple agreement for future equity

A simple agreement for future equity (SAFE) is an agreement between an investor and a company that provides rights to the investor for future equity in the company similar to a warrant, except without determining a specific price per share at the time of the initial investment. The SAFE investor receives the future shares when a priced round of investment or liquidity event occurs. SAFEs are intended to provide a simpler mechanism for startups to seek initial funding other than convertible notes.[1][2]

  1. ^ "What is a SAFE?". fundersclub.com. Retrieved 11 October 2021.
  2. ^ "Simple Agreement for Future Equity (SAFE)". uk.practicallaw.thomsonreuters.com. Retrieved 11 October 2021.