PrivateTechSharesSAFE
Also called: simple agreement for future equity, SAFE note
In one line
A simple agreement that gives an early investor the right to shares in a future priced round, instead of shares today.
In plain English
A SAFE is a popular early-stage instrument: an investor gives cash now in exchange for shares later, usually at a discount or capped valuation when the next priced round happens. It's not a loan and has no interest.
If you were explaining it to a 5-year-old
Someone gives the toy club coins now, and in return gets a promise of extra toys later when the club sets its official toy price — usually at a special deal.
Why it matters when you sell
Outstanding SAFEs convert into shares and dilute everyone at the next round, so they affect the final share count your stake is measured against.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: US SEC / Investor.gov, IRS (US tax). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.