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SAFE Agreement

sayf ah-GREE-ment

/seɪf əˈɡriːmənt/

Listen

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Syllable breakdown

safeagreement

Dictionary meaning

Simple Agreement for Future Equity; a contract giving an investor the right to obtain equity in a future priced funding round in exchange for current capital

Examples

  • Y Combinator popularized the SAFE agreement as an alternative to convertible notes for early-stage investing.

Pronunciation tips

SAFE is an acronym: Simple Agreement for Future Equity. Pronounced as the word 'safe'.

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