The SAFE, or Simple Agreement for Future Equity, is a modern alternative to convertible promissory notes, designed to simplify early-stage fundraising by eliminating debt and reducing legal complexities.

The SAFE, or Simple Agreement for Future Equity, is designed for very early-stage startups that haven't raised a priced round yet.

A SAFE, or Simple Agreement for Future Equity, allows an investor to provide money now in exchange for a promise of shares at a future date when a priced round occurs.

The introduction of the SAFE (Simple Agreement for Future Equity) in 2014 marked a return to convertible structures, allowing startups to raise funds without the complications of debt.

The SAFE (Simple Agreement for Future Equity) allows investors to convert their investment into equity at a later date, but the exact ownership percentage isn't known until the priced round occurs.

Convertible securities like SAFEs allow startups to raise funds without the burden of debt, making it easier for founders to focus on building their companies rather than managing loans and interest.

The SAFE converts into shares when the company completes an equity financing, which can be a priced round or a series round.

The SAFE is a five-page document that simplifies the investment process compared to traditional financing documents.

When you raise funds through a SAFE (Simple Agreement for Future Equity), you manage the money as a fiduciary, meaning you have responsibilities to use it for the company's benefit, not for personal use.