Raising money
SAFE
A SAFE, short for simple agreement for future equity, is a contract where an investor gives your company money now for shares later, usually at your next priced round.
Also called simple agreement for future equity, SAFE note
Looking this up for a class, a job, or something you want to build? If it is the last one, nommi reads your idea before you spend months on it.
A priced round is one where investors buy shares at an agreed price. A SAFE is not a loan and has no repayment date. A valuation cap (the highest value used to convert) or a discount (a lower price than new investors pay) sets the share count.
This is not legal or tax advice, check with a lawyer or accountant.
What recent Carta data says
On Carta, 77% of pre-seed deals from January to March 2026 were raised on SAFEs, against 15% on priced equity.
- Pre-seed deals raised on SAFEs vs priced equity, January to March 2026: 77% vs 15%. Source: Carta, State of Pre-Seed, Q1 2026 data.
- SAFEs with a valuation cap and no discount, 2025 (January to September): 61%, up from 56% in 2024. Source: Carta, State of Seed, Winter 2025.
Companies and rounds on Carta, not the whole market. As of 5 November 2026.
When this shows up
Example, not a real founder: an angel investor, someone investing their own money, offers you a check on a SAFE and calls the paperwork standard. You sign without working out the numbers. When your first priced round closes, several SAFEs convert together and your own share is smaller than you expected.
What to do next
Put every SAFE you have signed or been offered on one list with its cap and discount. Then work out the share each would own at a round price you would accept.