A discount SAFE allows investors to negotiate a discount rate instead of a valuation cap, rewarding early investment.

In a merger or acquisition, a SAFE investor converts their investment into shares of common stock based on the target valuation, allowing them to participate in the proceeds of the merger.

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.

There are different types of SAFEs, including those with valuation caps, discounts, and uncapped SAFEs with most favored nation clauses, but the valuation cap is the most common.

If an investor wants to add terms to a SAFE to address concerns about conversion, you can negotiate that, but it adds complexity to the agreement.

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.

Negotiating a SAFE typically involves only two points: the amount of money the investor will contribute and the valuation cap.

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 only two negotiable terms in the SAFE are the investment amount and the valuation cap.