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The Simple Agreement for Future Equity (“SAFE”) is a financing instrument used in early-stage funding and seed funding, and resembles the dynamics of a convertible note without having the intricacies that a convertible debt instrument would entail.
23 sty 2024 · Simple agreements for future equity, or SAFEs, are flexible agreements providing future equity rights without immediate valuation. SAFEs are commonly used for early-stage startup funding....
8 mar 2024 · What is a Simple Agreement for Future Equity (SAFE)? A SAFE is a convertible instrument commonly used as a form of consideration in a pre-seed, seed or seed+ round of capital.
26 wrz 2024 · A SAFE (Simple Agreement for Future Equity) is a legal contract between a startup and an investor that allows the investor to purchase equity in the company at a future date (typically during your company’s next priced round or during a liquidity event).
Let us start by looking at the definition of a financial instrument, which is that a financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
IFRS 9, Financial Instruments has simplified the way that financial assets are accounted. As with financial liabilities the standard retains a mixed measurement system for financial assets, allowing some to be stated at fair value while others at amortised cost.
A simple agreement for future equity (SAFE) is a financing contract that may be used by a startup company to raise capital in its seed financing rounds. The instrument is viewed by some as a more founder-friendly alternative to convertible notes.