SAFE
Definition
Simple Agreement for Future Equity. A convertible instrument through which an investor provides capital to a company in exchange for the right to receive equity at a future priced round, on terms defined at the time of investment, without creating a debt obligation or requiring interest payments. The SAFE is not a share; it is a contractual right to receive shares at a future conversion event. All outstanding SAFEs must be reflected on the fully diluted cap table from the date of issuance.
Common Misapplication
The most common misapplication is treating a SAFE as an off-balance-sheet obligation that does not affect the cap table until conversion. A SAFE represents a real dilutive claim from the date of issuance and must be modeled on the fully diluted cap table at its expected conversion share count from that date.
FFI Standard Reference
This term is defined and applied in Book 3, Section 3.2: The SAFE and Convertible Instrument Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: SAFE. https://ffistandard.org/glossary/safe/. 2026.