![Understanding SAFEs: A Quick Guide to Simple Agreements for Future Equity](/content/images/size/w600/2024/07/Understanding-SAFEs-A-Quick-Guide-to-Simple-Agreements-for-Future-Equity.png)
Understanding SAFEs: A Quick Guide to Simple Agreements for Future Equity
A SAFE, or Simple Agreement for Future Equity (SAFE), is a financial instrument used by startups to raise capital. Introduced by Y Combinator in 2013, SAFEs have become a popular alternative to convertible notes for early-stage funding. This guide will explain what SAFEs are, how they work, and the most