Golden
LoginSign Up
SAFE (Simple Agreement for Future Equity)

SAFE (Simple Agreement for Future Equity)

The Simple Agreement for Future Equity is a financial instrument created by Y Combinator to simplify seed investing as an alternative to convertible notes.

All edits by  Ryan Pawell 

Edits on 22 Oct 2017
Ryan Pawell"More detail on SAFEs and their benefits"
Ryan Pawell edited on 22 Oct 2017 9:55 pm
Edits made to:
Article (+347/-0 characters)

Article

The Simple Agreement for Future Equity is a financial instrument created by Y Combinator to simplify seed investing as an alternative to convertible notes. A SAFE is similar to a convertible note. SAFEs, however, do not come with an interest rate or maturity date and are not a loan.

SAFEs also allow for high resolution funding and flexibility with key terms such as the valuation cap and discount rate without the legal costs and negotiations typically associated with a more traditional priced round.

No more activity to show.