SAFE

A simple investment contract where someone gives you money now in exchange for the right to shares later, usually at your next priced funding round, without setting a valuation today.

SAFEs let early-stage founders raise quickly and cheaply without the legal cost of a full equity round, but they can stack up and dilute you more than expected once they all convert.

An angel puts in £25,000 on a SAFE, and that money turns into shares at your next funding round rather than buying shares straight away.