Within the startup and investor landscape, SAFEs and convertible
notes are quickly becoming the commonplace type of investment
document for early-stage companies. This may be because it only
requires the company and investor to negotiate and sign a single
document. Indeed, there is no requirement to agree on a valuation.
A SAFE is also an attractive way to provide funding to a startup
between major equity investments because of its speed and
simplicity. This article will unpack SAFEs as a way to raise
capital for your startup.
What Is a SAFE?
SAFE stands for a Simple Agreement for Future Equity. It is a
document that allows an investor to give money to a company on the
basis that it will convert to equity upon specific events
occurring. These trigger events typically include:
