SAFE vs SOM
SAFE (Simple Agreement for Future Equity) and SOM (Serviceable Obtainable Market) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: SAFE refers to simple agreement for future equity, while SOM refers to serviceable obtainable market — they describe different things even when they show up in the same sentence.
SAFE — Simple Agreement for Future Equity
Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later.
SOM — Serviceable Obtainable Market
What you can realistically win this year. SOM is not wishes — it's execution.
When to use SAFE
Reach for "SAFE" when the conversation is specifically about simple agreement for future equity. Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later.
When to use SOM
Reach for "SOM" when the conversation is specifically about serviceable obtainable market. What you can realistically win this year. SOM is not wishes — it's execution.
FAQs
What is the difference between SAFE and SOM?
SAFE stands for Simple Agreement for Future Equity — Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later. SOM stands for Serviceable Obtainable Market — What you can realistically win this year. SOM is not wishes — it's execution.
Are SAFE and SOM the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. SAFE = Simple Agreement for Future Equity. SOM = Serviceable Obtainable Market.
When should I use SAFE vs SOM?
Use SAFE when you're specifically referring to simple agreement for future equity. Use SOM when the topic is serviceable obtainable market.