Back

Anonymous

Anonymous

Hey I am on Medial • 1y

A SAFE (Simple Agreement for Future Equity) is an agreement between an investor and a company that provides rights to the investor for future equity without determining a specific price per share at the time of the initial investment. It is a flexible funding mechanism commonly used by startups to avoid complex valuations during early funding rounds. Example:Let's say your startup needs to raise capital quickly, but there is uncertainty around the company's current valuation. You use a SAFE agreement to attract investors. Here’s how it works:No Interest or Maturity Date: Unlike a convertible note, a SAFE doesn’t accrue interest or have a repayment date. Future Equity: The investor will receive equity when the company holds a priced round in the future.Valuation Cap or Discount: Often, a SAFE includes a valuation cap or a discount, giving the investor a beneficial price per share when the SAFE converts to equity.

Reply
3
8

More like this

Recommendations from Medial

Image Description
Image Description

Priyank

 • 

Money • 2m

This founder promised equity over WhatsApp. 14 times. Real story. Founder had traction, early product, even investor interest. But no one would commit. Why? Because 14 people were promised equity... with zero documentation. No SHA, no vesting, no c

See More
2 Replies
17
32
Image Description
Image Description

Nikhil Raj Singh

Entrepreneur | Build... • 5m

🚀 Startup Founders, Don’t Skip This! 🚀 Advisors add value. But a clear agreement keeps everything aligned—roles, equity, time, and expectations. Avoid future headaches, set things straight from day one. ✅ Download a free Founder-Advisor Agreement

See More
7 Replies
14
17

satyam singhal

Entrepreneur I Busin... • 5m

AI is changing the game—meet No Cap 🚀 No Cap isn’t your average angel investor—she’s the world’s first AI angel investor. She’s already funded her first startup, wiring $100k in just minutes after hearing the pitch. But No Cap doesn’t stop at writi

See More
Reply
2
Image Description
Image Description

Priyank

 • 

Money • 3m

Cap Table 101 - Here is how to keep it healthy A lot of founders mess up their cap table in early days. Here are 3 quick rules: 1. Founders should own ~80–85% post pre-seed Too low, and VCs will worry you’re already over-diluted. 2. Avoid giving b

See More
5 Replies
16

Saurabh Singhavi

Assisting Early-Stag... • 5m

The Hidden Power of the Cap Table! I have seen many entreprenueurs struggling with their cap table just before the funding round and at that point, its not easy to cleanup the mess! Cap Table is the DNA of your startup’s ownership and if you’re not

See More
Reply
3
Image Description

Amit Kumar

Make it work, make i... • 1y

When startup go for funding they get their funds from investors for some equity so if the enterpreneur gives his equity to the investor so in next funding round do investor has to dilute their equity too? or just the enterpreneur?

1 Reply
4
Image Description
Image Description

Antazya S Jatrana

Building KRATE • 1y

START-UPS = RISK As a founder. As an investor. No safe havens here.

4 Replies
3

financialnews

Founder And CEO Of F... • 10m

“Nifty Smallcap Stocks: 50% Trading 20-42% Below 52-Week Highs – Investor Strategies” “Dalal Street Small-Cap Stocks: Investor Interest Wanes Amid Weak Earnings, Geopolitical Tensions, and Profit-Taking” Investor interest in small-cap stocks on Dala

See More
Reply
2
Image Description

Swaraj Sharma

Hey I am on Medial • 1y

What do you guys think what will be the market cap of turfs (playing ground)? And what's the future of turfs ?

2 Replies
2

Gangesh Rameshkumar

Figure it out • 2m

Today's term of the day: Credit Credit is a kind of loan handed out by financial institutions to businesses and individuals. You can think of it as the ability you have to borrow resources from a lender to pay at a later date, with interest for usin

See More
Reply
2

Download the medial app to read full posts, comements and news.