FundraisingAdvanced

SAFE

Simple Agreement for Future Equity

A simple fundraising contract where an investor gives you money now in exchange for shares later, usually at your next priced round. Quick and founder-friendly.

Example

An angel invests ₹25 lakh on a SAFE that converts to equity when you raise your seed round.

Related terms

Convertible Note

A loan from an investor that later converts into shares instead of being paid back in cash — often with a discount as a reward for investing early.

Valuation

How much your company is judged to be worth. 'Pre-money' is the value before new investment; 'post-money' is pre-money plus the money raised.

Dilution

When new shares are issued (to investors or employees), each existing owner's percentage of the company shrinks — even though the company is usually worth more overall.

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