SAFE (Simple Agreement for Future Equity)

A SAFE (Simple Agreement for Future Equity) is an agreement between an investor and a company that provides rights to the investor for equity in the company similar to a warrant, except without determining a specific price per share. The SAFE investor receives the futures shares when a priced round of investment or liquidation event occurs. Startup accelerator Y Combinator released the Simple Agreement for Future Equity (“SAFE”) investment instrument as an alternative to convertible debt in late 2013.[1]

References

  1. ↑ "SAFEs and KISSes Poised to Be the Next Generation of Startup Financing". The National Law Review. 2015-05-06. Retrieved 2016-05-05.


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