What Is a SAFE?

An early financing document with consequences that extend into later rounds.

A right tied to future events

A SAFE provides contractual rights under defined events, such as an equity financing or liquidity event. Common YC forms are not loans and do not accrue interest or have a maturity date.

Model the whole picture

Review valuation caps, discounts, and any side letters alongside all outstanding instruments. Different versions can produce different ownership outcomes.

Keep records as you raise

Retain executed agreements, approvals, and payment records. Update your financing model when another instrument is issued. A simplified example is not a substitute for modeling the actual terms.

Further reading: Y Combinator SAFE documents ↗

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