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The SAFE — the open standard for startup fundraising | Y Combinator

ycombinator.com · 840 words · saved by 1 readers

The SAFE is the free, standardized agreement startups use to raise early money. Learn the instrument — forms, valuation caps, conversion — and how it works.

What is a SAFE A SAFE (Simple Agreement for Future Equity) is a short contract an investor signs to fund your startup now in exchange for the right to shares of stock in your startup later. It converts into shares automatically when your startup raises a priced round. Standard: The default instrument investors expect. Simple: One short document, and usually the only term to negotiate is the valuation cap. Clarity: The ownership you're selling is transparent and easy to calculate. Proven: Thousands of startups, billions raised, over a decade of use. What is "Send a SAFE" "Send a SAFE"…

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