SAFE (Simple Agreement for Futur Equity)

A SAFE is a type of investment contract often used for startup investments

A SAFE is an investment contract often used in startup funding. It is similar to a convertible note in that it allows investors to provide funding to a company in exchange for equity, but with certain key differences. One key difference is that SAFE notes do not accrue interest, which makes them more attractive to startup companies than convertible notes.

SAFE notes are common in equity crowdfunding rounds.

For startup investors, SAFE notes can be a way to get in on the ground floor of a promising company without having to put up a lot of money. However, it is important to remember that SAFE notes are a high-risk investment, and there is no guarantee that the company will be successful or that you will make any money back on your investment.

Want to learn more but aren’t sure where to start? You can explore 168 crowdfunding investment platforms in our database and learn more about the nuts and bolts of crowdfunding and alternative investing on our blog. Did you know you can use a self-directed retirement account to invest in many alternative investments? Rocket Dollar makes it easy, and when you sign up using that link you'll be helping to support YieldTalk.