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About the Safe. Y Combinator introduced the safe (simple agreement for future equity) in late 2013, and since then, it has been used by almost all YC startups and countless non-YC startups as the main instrument for early-stage fundraising.

The SAFE was introduced by Y Combinator in late 2013 as an alternative to convertible notes. Key milestones in SAFE history include: 2013: Y Combinator introduces the SAFE to simplify early-stage fundraising. 2014-2015: SAFEs gain popularity among Silicon Valley startups. 2017: Y Combinator updates the SAFE to use post-money valuation caps.

Y-Combinator released the new post-money SAFE in October 2018. It’s a large change from the original pre-money SAFE that was released in 2013. When YC released their PM SAFE there was no calculator to illustrate the mechanics so I figured it out. This awesome calculator will show you the dilutive effects of raising with SAFEs.

The biggest advantage of the post-money safe is that the amount of ownership sold is immediately transparent and calculable for both the founder and the investor. This Quick Start Guide will show how to take advantage of this new ... In late 2013, Y Combinator introduced the original safe, or the Simple Agreement for Future Equity. At the time of

What is SAFE Note? SAFE Note—or “Simple Agreement for Future Equity”—is a form of early-stage startup financing introduced by Y Combinator in 2013.. SAFE notes are financial instruments designed to streamline early-stage funding processes, offering a more straightforward alternative to traditional convertible notes (i.e., debt instruments that can be converted into equity).

Startup accelerator and Cooley client Y Combinator (commonly referred to simply as “YC”) maintains a set of financing documents (referred to as SAFEs, or Simple Agreement for Future Equity). We have created a generator on Cooley GO for preparing your own customized set for free, plus additional generators that produce modified forms of Safe ...

SAFE with post-money valuation cap. Part of the reason Y Combinator has been trying to push this instrument as “standard” in the past few years, other than its investor-friendliness, is that it is relatively easy to model, at least for companies that have no other convertible securities outstanding.

If you want to understand how all the math works, you can download a SAFE calculator I made here: SAFE Calculator for the Y-Combinator Post Money SAFE. Early exit clause. If you have an early exit, convertible notes and SAFE have similar payout mechanisms in the event of a change in control (acquisition/IPO). The SAFE is written to give the ...

In December 2013, Y-Combinator announced the Safe, a Replacement for Convertible Notes via their terrific blog post written by Paul Graham. In short the “Simple agreement for future equity” (Safe) was created by Y-Combinator partner (and lawyer) Carolynn Levy is a non-debt alternative to convertible notes.

Introduced by Y Combinator in 2013, the SAFE is a financial instrument designed to simplify the process of early-stage funding. Functioning as an agreement between an investor and a startup, it grants the investor the right to claim equity in the company at a later event, typically during a future priced funding round, without determining a ...

Useful Resources. For further reading and resources on SAFE agreements and Y Combinator’s role in startup funding: Y Combinator’s SAFE User Guide: An exhaustive guide detailing how SAFE agreements work, directly from Y Combinator.; U.S. Securities and Exchange Commission (SEC): Offers comprehensive information on regulations and compliance for startup investments.

In this User Guide, the post-money safe is referred to as the “post-money safe,” “Standard Safe” or simply “safe.” The original version of the safe replaced by the post-money safe is referred to exclusively as the “original safe.” In late 2013, Y Combinator introduced the original safe, or the Simple Agreement for Future Equity ...

It can't say that it's the same as the SAFE that's on the Y Combinator website, and so you'll know as a founder that you should be looking at it more closely to see what's been changed. So, this is just something to keep your eyes open for if you receive a SAFE from an investor. Okay. So, the anatomy of the SAFE is pretty straightforward.

Understanding the Y Combinator SAFE Note can be crucial for startups and investors alike. The Simple Agreement for Future Equity (SAFE) note is a financing instrument that has grown in popularity for its straightforwardness and efficiency in early-stage investment rounds. This guide aims to provide a comprehensive overview of what SAFE notes ...

Refer to “Other resources” below for Safe financing documents designed for other jurisdictions. Since 2013, startup accelerator Y Combinator (commonly referred to simply as “YC”) has made available a set of financing documents referred to as “Safes.” “Safe” stands for “simple agreement for future equity.” These docs are ...

Y Combinator SAFE Calculator . Hi r/startups, I built a SAFE Calculator last spring for negotiating terms with angels and VC's. I'm based on the east coast so this was a new platform for many of the investors we talked to, and I found that this tool helped clarify the process for many parties involved.

Created by Y Combinator, a leading startup accelerator, in 2013, SAFE agreements were designed to simplify the funding process for early-stage startups. They are intended to overcome the complexities and costs associated with traditional equity and debt financing methods.

Back in 2013, Y Combinator announced the first version of SAFE — Pre-money SAFE, as an easy and quick way of getting small investments before the Equity round (usually, before Round A). ... All calculations are stated in detail on Y Combinator’s website as well as all SAFE templates. Minuses: The only way to make money is to pray that the ...

Understanding Y Combinator’s SAFE Agreement. Startups looking for initial funding often turn to various types of agreements with investors. One popular tool that has gained traction for its simplicity and founder-friendly nature is the Simple Agreement for Future Equity (SAFE), developed by the startup accelerator Y Combinator.