Simple Agreement for Future Equity
type: Class
preferred label: SAFE Agreement
alternative label: Future Equity Agreement
subclass of: RCAIUgUHLdwFdtdPTruyEgL
definition: A Simple Agreement for Future Equity (SAFE) is a contractual agreement between an investor and a company wherein the investor provides capital to the company in exchange for the rights to receive equity at a later date. The equity is usually issued during a subsequent financing round, at which point the SAFE converts based on the terms set forth in the agreement.