A “Simple Agreement for Future Equity” (SAFE) is a financing instrument that is designed to simplify the process of raising capital for startup companies. It is similar to a convertible note in that it allows investors to provide capital to a company in exchange for the right to receive equity at a later date, usually when the company raises a subsequent round of financing or achieves a liquidity event.

One key difference between a SAFE and a convertible note is that a SAFE does not accrue interest or have a maturity date, meaning that the investors do not have a guaranteed payout in the event that the company does not achieve certain milestones. Additionally, SAFEs are generally simpler to draft and execute than convertible notes, making them a more attractive option for early-stage companies that are looking to raise capital quickly.

A SAFE is often considered a more founder-friendly way of raising capital as SAFEs are simpler to use and don’t have interest payments. However, on the other side, SAFEs do not have any maturity date which means investors don’t have guaranteed return of their investment.

View Full Answer Page: What is a SAFE (Simple Agreement for Future Equity)?

About the Author: Ryan Frank

Ryan Frank
Ryan Frank is the CEO & Founder of Funded which provides end-to-end marketing/advertising solutions for equity crowdfunding and private placement capital raises. Ryan has been in the digital marketing industry for 15 years and brings a wealth of knowledge to the equity crowdfunding/capital raise space.

Disclaimer – The information provided on this website does not constitute legal or regulatory advice; instead, all information, content, and materials available on this site are provided for general informational purposes only. Information on this website may not constitute the most up-to-date information; legal, regulatory or otherwise. Readers of this website should contact their attorney to obtain advice with respect to any particular legal or regulatory matter.

Our Digital Capital Raise Solutions

Helping issuers plan and execute successful crowd investing campaigns since 2019.

Brands We Have Worked With

Here are some of the great brands we have worked with planning and executing capital raises:

Reg D + Reg S
Reg A + Reg CF + Reg D
Reg A + Reg D
Private Equity Fund / Reg D
Reg D
Reg A + Reg D
Private Equity Fund / Reg D
Private Equity Fund / Reg D
Reg D + Reg S
Private Equity Fund / Reg D
Private Equity Fund / Reg D
Reg D
Private Equity Fund / Reg D
Reg D + Reg S
Private Equity Fund / Reg D
Reg A
Reg A
Reg A
Reg A + Reg D
Reg A

Brands We Have Worked With

Here are some of the great brands we have worked with planning and executing capital raises:

Reg D + Reg S
Reg A + Reg CF + Reg D
Private Equity Fund / Reg D
Reg A + Reg D
Private Equity Fund / Reg D
Reg D
Reg A + Reg D
Private Equity Fund / Reg D
Reg A
Private Equity Fund / Reg D
Reg D + Reg S
Reg A + Reg D
Ryan Frank

CEO & Founder of Funded

Ready to Take Control of Your Capital Raise?

What Our Clients Have to Say

Matt Belcher

CEO & Co Founder
CalTier Realty

“Ryan and the Funded team have been instrumental in our Reg D, Reg A and Reg CF raises. They understand how to find and drive qualified leads into our offerings as well as help us find ways to convert these prospects into shareholders. I wouldn’t hesitate to recommend the Funded team to any company looking to raise capital!”

Let’s Make Things Happen

Funded provides end-to-end marketing and advertising solutions for your Reg D, Reg S, Reg A or Reg CF raise. Drop us a line today and let’s talk!

“The Funded team has been instrumental in our Reg D, Reg A and Reg CF raises. I wouldn’t hesitate to recommend them to any company looking to raise capital online!”

Matt Belcher

CEO & Co Founder
CalTier Realty

Ryan Frank
CEO & Founder of Funded
  • End-to-End Equity Crowdfunding Marketing & Advertising Solutions

  • Guidance on All Aspects of Your Raise

  • Access to Our Extensive Partner Network