Welcome to SAFE Assistant

A SAFE (Simple Agreement for Future Equity) is a financial instrument used by startups to raise capital efficiently without immediate equity dilution or company valuation. It allows investors to convert their initial cash investment into equity during future financing rounds, typically when more traditional equity financing is secured. This setup benefits founders by deferring detailed valuation negotiations until the company is more established, thereby focusing early-stage resources on growth rather than complex financial discussions. SAFEs do not carry interest rates or maturity dates, making them particularly attractive for early-stage companies still increasing steady revenues.