A SAFE (Simple Agreement for Future Equity) is a common early-stage financing instrument that is not debt and typically converts into equity in a future priced round based on a valuation cap and/or discount, with no maturity date or interest. In seed financings, a SAFE is used to raise capital quickly with standardized terms, and SAFE terms can materially affect dilution when the SAFE converts.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
