unknown (Y Combinator form document, published for free use) ↗
The SAFE Contract
- Year
- 2013
- Creator
- Carolynn Levy
- Company
- Y Combinator
- Location
- Mountain View, California
Description
A SAFE, or simple agreement for future equity, is a short contract that gives an investor the right to future shares in a startup. Y Combinator partner Carolynn Levy wrote it, and YC published it free on December 6, 2013.
Importance
In 2010, Y Combinator told its startups to use convertible notes, which are loans with an interest rate and a fixed term. The SAFE removed those loan terms, so founders could close seed rounds quickly with less legal work. In 2018, YC made a post-money version the standard for its own startups.
Interesting fact
In its 2013 announcement, YC wrote the name in lowercase letters because its partners did not want to type capitals all the time.
Sources
- Announcing the Safe, a Replacement for Convertible Notes ↗Y Combinator · 2013-12-06
- Y Combinator Documents: SAFE financing documents ↗Y Combinator · 2026