GlossarySAFE Note
SAFEFunding

SAFE Note

(SAFE)

Definition

Simple Agreement for Future Equity — a document where an investor gives you money now in exchange for the right to convert it into equity at your next funding round, usually at a discount or with a valuation cap.

Why founders care

Common in early-stage Indian startups for angel rounds. Cheaper to issue than a priced round. Make sure you understand the valuation cap and discount rate before signing — they determine how much the investor gets.

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