About this Resource

The "Simple Agreement for Future Equity" (SAFE) was created by Y Combinator to simplify seed-stage fundraising. It's a convertible security that converts to equity at a future priced round, but without the debt-like features of a convertible note (like interest rates and maturity dates).

Types of SAFEs

• Valuation Cap, no Discount
• Discount, no Valuation Cap
• Valuation Cap and Discount
• MFN (Most Favored Nation), no Valuation Cap, no Discount

These documents are widely accepted by investors and can help reduce legal fees and negotiation time.