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SAFE (Simple Agreement for Future Equity)

An investment contract, published by Y Combinator, where an investor pays now for shares issued at a later priced round; used by US corporations.

The short answer, then the detailChecked September 2026

The detail

What it means in practice.

A SAFE isn't debt and isn't stock. It's a promise of shares when the company next raises a priced round, usually under a valuation cap or at a discount. It's the standard first investment document for US startups and assumes a corporation with shares to issue. An LLC can't cleanly issue one, which is one reason investors ask founders to convert.

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