Definition
Simple Agreement for Future Equity—a legal document that converts to stock 'later,' making investors believe they're taking less risk than they are.
Example Usage
We just raised $500K on SAFEs because they're faster than traditional equity rounds, assuming we're still alive when they convert.
Origin
Invented by Y Combinator in 2013 to simplify early-stage fundraising
Fun Fact
SAFEs are technically not equity, securities, or loans—they're a legal gray area that somehow became venture capital standard practice
Source: Y Combinator and venture capital terminology
Related Terms
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See “SAFE Agreement” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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