Understanding Simple Agreements for Future Equity
Simple Agreement for Future Equity (SAFE) is a financing instrument used in startup capital raising that gives an investor the right to receive shares in a future equity round if specified events occur. SAFEs allow startups to raise capital quickly while deferring valuation and share issuance until a later funding round. SAFEs have become a common feature of early-stage capital raising in Australia, particularly at pre-seed and seed stage. They are often described as a faster, simpler alternative to convertible notes, and are designed to help companies raise capital without […]