How SAFEs Work SAFE stands for Simple Agreement for Future Equity. It was created by the team at Y Combinator and has been a popular method for investing at the earlier stage of a company. At the early stage of a startup, it can be difficult to accurately assign a value to the company because there is usually very little data. That’s where a SAFE comes in to play — it’s a form of convertible security that allows you to postpone the valuation part until later on. A SAFE is neither debt nor equity, and there is no interest accruing or maturity date.
The Complete Guide to SAFEs
The Complete Guide to SAFEs
The Complete Guide to SAFEs
How SAFEs Work SAFE stands for Simple Agreement for Future Equity. It was created by the team at Y Combinator and has been a popular method for investing at the earlier stage of a company. At the early stage of a startup, it can be difficult to accurately assign a value to the company because there is usually very little data. That’s where a SAFE comes in to play — it’s a form of convertible security that allows you to postpone the valuation part until later on. A SAFE is neither debt nor equity, and there is no interest accruing or maturity date.