SAFE (Simple Agreement for Future Equity)
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.
Benefits
A SAFE is an agreement promising future equity to investors, with terms decided 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.
Key Takeaway
A SAFE (Simple Agreement for Future Equity) secures future ownership in a startup with terms decided in later funding rounds.