A Simple Agreement for Future Equity<strong data-start="111" data-end="156"> (SAFE) is an investment contract that allows startups to raise capital without immediately determining a company valuation or issuing equity. Developed by Y Combinator, a SAFE gives investors the right to receive equity in the future when a triggering event occurs, such as a priced funding round, acquisition, or IPO. Unlike traditional equity financing, a <strong data-start="508" data-end="546">Simple Agreement for Future Equity does not create debt, accrue interest, or have a maturity date. It is widely used by early-stage startups because it simplifies fundraising while giving founders flexibility. For investors, a SAFE offers the opportunity to acquire shares later, often at a discounted price or based on a valuation cap.