Startup Investing
SAFE
Definition
What is SAFE?
A contract providing a right to future equity under specified financing or liquidityThe ease and speed with which an investment can be converted into cash without a major price concession. events, without being ordinary debt.
Example in practice
How This Looks in Practice
The startup raises money through a SAFE with a valuation capThe maximum valuation used to convert a SAFE or convertible instrument into equity..
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Related Terms
Startup Investing
Term Sheet
A preliminary document outlining the main commercial terms of a proposed investment.
Startup InvestingPre-Money Valuation
A company's agreed value immediately before a new investment.
Startup InvestingPost-Money Valuation
A company's value immediately after adding new investment capital.
Startup MetricsBurn Rate
The rate at which a company spends cash, commonly measured monthly.