Keep It Simple And Safe – Explaining The New-Found Popularity Of The SAFE

If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.  

Not for a SAFE.

In the case of a SAFE, or a Simple Agreement for Future Equity, an investor essentially makes a cash investment in a company and a promise of future equity later. While a SAFE seems exactly like a convertible debenture or other form of debt instrument, it is not. Unlike various debt instruments, a SAFE has no maturity date and benefits both the companies looking to raise capital and investors alike. Companies can list a SAFE like any other convertible security on their balance sheets and, since a SAFE is a simple equity security, it has the potential to be standardized, lending itself to speed, efficiency, and cost-savings for both parties.