A standardized investment agreement created by Y Combinator that converts to equity at the next priced round. Most common pre-seed and seed instrument in 2026.
A SAFE is a 5-page document that lets early-stage startups raise without setting a valuation now. Key terms: cap, discount, MFN. SAFEs convert at the next priced round — typically Series A. No debt, no interest, no maturity (vs convertible notes).
Used early SAFEs from Y Combinator to fundraise without dilution
Default fundraising instrument
SAFEs simplify fundraising and avoid premature valuation. Most YC startups raise on SAFEs through pre-seed and seed.
The maximum valuation at which the SAFE converts to equity. If your priced round comes in below the cap, SAFE-holders get equity at the round valuation.
Post-money is the YC standard since 2018 — clearer dilution math. Use post-money unless investors specifically demand pre-money.
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