Startup Investing

SAFE

Definition

What is SAFE?

A contract providing a right to future equity under specified financing or liquidity events, without being ordinary debt.

Example in practice

How This Looks in Practice

The startup raises money through a SAFE with a valuation cap.

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Related Terms

Startup Investing

Term Sheet

A preliminary document outlining the main commercial terms of a proposed investment.

Startup Investing

Pre-Money Valuation

A company's agreed value immediately before a new investment.

Startup Investing

Post-Money Valuation

A company's value immediately after adding new investment capital.

Startup Metrics

Burn Rate

The rate at which a company spends cash, commonly measured monthly.

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