SAFE — Simple Agreement for Future Equity
Definition: Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later.
Example
In board meetings, you'll often hear something like: "Let's pull the latest SAFE numbers before we make a call" — shorthand for simple agreement for future equity.
When you'll hear it
SAFE shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to simple agreement for future equity — and they expect the room to already know what that means.
FAQs
What does SAFE stand for?
SAFE stands for Simple Agreement for Future Equity.
What does SAFE mean in business and finance?
Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later.
Where will I hear SAFE used at work?
SAFE comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for simple agreement for future equity, so people assume you already know the term.