# Simple Agreement for Future Equity

**IRI:** https://folio.openlegalstandard.org/R7lf0A1jIEuJv35dVQwjxlI

## Labels

**Preferred Label:** SAFE Agreement

**Alternative Labels:**

- Future Equity Agreement

## 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.

## Sub Class Of

- https://folio.openlegalstandard.org/RCAIUgUHLdwFdtdPTruyEgL

**Deprecated:** False