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.

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 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.

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, is an alternative to a convertible note that allows startups to quickly raise funds without the complexities of a priced round.

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.

Founders need to be aware that their ownership percentage can decrease significantly due to dilution from SAFEs and new equity rounds, so they should plan accordingly for future fundraising. The percentage of ownership for SAFE investors is based on the valuation cap in the SAFE, and if the priced round valuation is higher than the cap, they convert at the cap, receiving more shares for the same investment than Series A investors.

When raising funds, it's advisable to use post-money SAFEs to simplify calculations and better track future dilution, even if pre-money SAFEs have been used in the past.

It's crucial for founders to keep track of how much equity they've sold through SAFEs, as this affects their ownership percentage and future fundraising.