SAFE Note

An investment instrument where an investor gives you money now in exchange for equity at a future funding round, not a loan, not immediate equity.

SAFEs are simpler and cheaper than priced equity rounds. They allow you to raise money quickly without formally valuing your company, which is ideal for very early-stage startups.

An angel invests £50k via a SAFE with a £2M valuation cap. When you raise your Series A at a £5M valuation, the SAFE converts to equity at the £2M cap, the angel gets more shares than new investors.