SAFE
Also: Simple Agreement for Future Equity
A simple instrument that converts into shares at your next priced round, usually with a cap and/or discount.
Fast and cheap to sign, so it dominates early rounds — but stacked SAFEs can hide how much you've really sold.
Hear it from people who've done it
Get the real-world version of "SAFE" drawn from hundreds of conversations with founders and investors.
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Valuation cap
The maximum valuation at which a SAFE or note converts, protecting early investors if you raise the next round high.
Discount
A percentage break early SAFE/note holders get on the next round's price as a reward for backing you sooner.
Convertible note
A loan that converts into equity at a later round — like a SAFE but with interest and a maturity date.
Pre-seed
The first outside money, usually raised on an idea, a prototype and a team rather than real traction.
Priced round
A raise where you agree a valuation and issue shares at that price, as opposed to a note or SAFE.
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