Deckmetric
    Jump to letterABCDEFGHIJKLMNOPQRSTUVWXYZ
    Funding Stages & Instruments
    Entry
    Global · Global

    SAFE

    Also called: Simple Agreement for Future Equity

    TL;DR

    Y Combinator's Simple Agreement for Future Equity, a contract that gives an investor the right to equity in a future priced round, with no debt or interest.

    A SAFE is a contract created by Y Combinator in 2013 to standardize early-stage investing. Unlike a convertible note, a SAFE is not debt: there's no interest, no maturity date, and no repayment if the company fails. It converts into equity at the next priced round, usually at a discount, a valuation cap, or both.

    SAFEs come in pre-money and post-money flavors; the post-money SAFE introduced in 2018 is now standard at YC. SAFEs are popular because they close fast (a few hours of legal work) and avoid the complexity of negotiating a priced round at the earliest stage.

    Worked example

    A team raises $1M on a post-money SAFE with a $10M cap. If the next priced round closes at a $40M pre-money valuation, the SAFE converts at the $10M cap → SAFE holder owns $1M ÷ $10M = 10% post-money on the SAFE round.

    Common pitfalls

    • •Stacking many SAFEs at different caps without modeling dilution.
    • •Confusing pre-money and post-money SAFE math.
    • •Treating the cap as the price, it's a ceiling, not a guarantee.

    When this shows up in a pitch deck

    SAFE structure shows up implicitly in cap-table modeling but rarely in deck copy itself. Deckmetric's YC framework page links to SAFE conversion mechanics.

    See SAFE in context

    SAFE shows up most often in these scoring rubrics and investor profiles, jump straight to who cares about it and how to pitch them.

    Related terms

    Post-Money SAFE

    The 2018 YC SAFE variant where the valuation cap is computed on a post-money basis, making the investor's ownership share predictable.

    Pre-Money SAFE

    The original (2013) SAFE variant where the valuation cap was computed on a pre-money basis, sharing dilution across SAFE holders.

    Convertible Note

    Short-term debt that converts into equity at a future priced round, typically with a discount, a valuation cap, and an interest rate.

    Valuation Cap

    The maximum company valuation at which a SAFE or convertible note will convert into equity, protecting early investors from dilution at high prices.

    Discount Rate (Convertible)

    The percentage discount a convertible note or SAFE holder receives off the next priced round's price per share.

    Pitch deck pillar pages

    Long-form deep dives on the slides SAFE most often shows up on.

    Fundraising Readiness Checklist

    Are you ready to raise? A 12-question fundraising readiness checklist: deck quality, traction milestones, valuation defensibility, investor list, data room.

    Frequently asked questions

    Use SAFE in your next pitch deck

    Deckmetric scores your pitch across 10 VC frameworks and against 8 investor types.