SAFE (Simple Agreement for Future Equity)
Content
Definition
A SAFE (Simple Agreement for Future Equity) is an investment agreement between a startup and investors, promising future equity in the company without specifying the exact terms until a later financing round.
Usage and Context
A SAFE (Simple Agreement for Future Equity) is a deal where investors receive future equity based on terms set in a later funding round.
Frequently asked questions
- What is scalability in startup? Scalability means a startup`s ability to grow without being held back by its current systems or resources.
- What is a safe agreement? A SAFE agreement is a way for investors to provide funding to a startup in return for the right to buy equity at a later date, usually when the startup raises a future financing round.
- What is the SAFE note investment round? The SAFE note investment round allows investors to receive equity in a startup during future funding rounds, without setting a specific price at the time of investment.
Benefits
A SAFE is an agreement promising future equity to investors, with terms decided in a later funding round.
Conclusion
A SAFE (Simple Agreement for Future Equity) secures future ownership in a startup with terms decided in later funding rounds.
