SAFE
/seɪf/acronym · concept(Simple Agreement for Future Equity)
A short, founder-friendly contract where an investor wires money now in exchange for shares at the next priced round — no interest, no maturity date, no debt to pay back.
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Add my companyCarolynn Levy at Y Combinator drafted the original SAFE in late 2013. Convertible notes had become the de facto seed instrument but carried baggage — interest, maturity dates, the threat of insolvency if the next round didn't close. The SAFE stripped all of that out: five pages, no debt, converts at the next priced round. Within a few years it became the global default.
Source:Y Combinator — SAFE primer
