SAFE Note

A simple agreement giving investors future equity for cash now.

A SAFE, Simple Agreement for Future Equity, lets startups raise money in exchange for the right to shares in a future priced round, without interest or a maturity date. Created by Y Combinator, it is simpler than a convertible note and widely used in early-stage funding.

The founders raised their seed money on a SAFE note, deferring the valuation fight to a later round.