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fundraising
SAFE (Simple Agreement for Future Equity)
Y Combinator investment instrument converting to equity at next priced round.
A SAFE (Simple Agreement for Future Equity) is an investment instrument created by Y Combinator. It gives investors the right to receive equity at a future priced round, typically with a valuation cap or discount. SAFEs are simpler than convertible notes.
Tips
- Understand valuation caps and discounts
- SAFEs don't have maturity dates
- Track all SAFEs on your cap table
Related Terms
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