SAFE Note Template

A SAFE (Simple Agreement for Future Equity) is a financing instrument used by startups to raise capital without immediately setting a valuation. Popularized by Y Combinator, SAFEs convert to equity in a future priced round, giving investors equity at a discount or subject to a valuation cap.

SAFEs are simpler and faster than convertible notes — they have no interest rate, no maturity date, and no repayment obligation. This makes them the preferred instrument for early-stage fundraising.

Our AI-generated SAFE notes follow Y Combinator's standard terms while allowing customization for your specific cap, discount, and most-favored-nation provisions.

Select Contract Jurisdiction

🇺🇸

California SAFE Note

California has some of the most employee and contractor-friendly laws in the United States. The state's strict worker classification rules under AB5, ...

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🇺🇸

Texas SAFE Note

Texas is widely considered a business-friendly state with strong contract enforcement traditions. The state follows at-will employment, enforces reaso...

View template

🇺🇸

New York SAFE Note

New York is a major commercial hub with sophisticated contract law shaped by centuries of case precedent. The state's courts are experienced with comp...

View template

🇬🇧

United Kingdom SAFE Note

United Kingdom contract law is governed by common law principles, the Employment Rights Act, and extensive regulations implementing retained EU law in...

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Key Clauses Included

Valuation Cap

Sets the maximum valuation at which the SAFE converts to equity, protecting the investor if the company's valuation increases significantly.

Discount Rate

Provides the investor a percentage discount on the share price in the next equity financing round.

Conversion Mechanics

Defines how and when the SAFE converts to equity — typically at the next priced equity round, dissolution, or change of control.

Pro Rata Rights

Gives the investor the right to participate in future funding rounds to maintain their ownership percentage.

Most Favored Nation

Ensures the investor gets the benefit of any better terms offered to other SAFE holders.

Who needs this?

Early-stage startup founders raising pre-seed or seed funding
Angel investors making early-stage investments
Startup accelerators and incubators
Founders who want a quick fundraising instrument without complex negotiations

When to use it

When raising a pre-seed or seed round from angel investors
When you want to avoid setting a company valuation too early
When speed is important and you need a simple investment document
When participating in an accelerator program

Frequently Asked Questions

What is the difference between a SAFE and a convertible note?

A SAFE has no interest rate, no maturity date, and no repayment obligation. Convertible notes accrue interest and must be repaid or converted by a maturity date. SAFEs are simpler and more founder-friendly.

Should I use a valuation cap, discount, or both?

Most SAFEs include a valuation cap, a discount (typically 15-25%), or both. A cap-only SAFE is most common for early-stage rounds. Discuss with your investors to determine the best structure.

Are SAFE notes available in all jurisdictions?

SAFEs are primarily used in the US and follow US securities law. They can be adapted for UK use, but the legal framework differs. Consult local counsel for non-US jurisdictions.

How much can I raise with a SAFE?

There's no legal limit, but SAFEs are typically used for raises of $50K to $2M. For larger rounds, a priced equity round may be more appropriate.

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Generate your safe note now

Create a customized safe note in 60 seconds with AI.

Get Started Free

SAFE Note Template

Our AI-generated SAFE notes follow Y Combinator's standard terms while allowing customization for your specific cap, discount, and most-favored-nation provisions.

Select Contract Jurisdiction

🇺🇸

California SAFE Note

California has some of the most employee and contractor-friendly laws in the United States. The state's strict worker classification rules under AB5, ...

View template

🇺🇸

Texas SAFE Note

Texas is widely considered a business-friendly state with strong contract enforcement traditions. The state follows at-will employment, enforces reaso...

View template

🇺🇸

New York SAFE Note

New York is a major commercial hub with sophisticated contract law shaped by centuries of case precedent. The state's courts are experienced with comp...

View template

🇬🇧

United Kingdom SAFE Note

United Kingdom contract law is governed by common law principles, the Employment Rights Act, and extensive regulations implementing retained EU law in...

View template

Key Clauses Included

Valuation Cap

Sets the maximum valuation at which the SAFE converts to equity, protecting the investor if the company's valuation increases significantly.

Discount Rate

Provides the investor a percentage discount on the share price in the next equity financing round.

Conversion Mechanics

Defines how and when the SAFE converts to equity — typically at the next priced equity round, dissolution, or change of control.

Pro Rata Rights

Gives the investor the right to participate in future funding rounds to maintain their ownership percentage.

Most Favored Nation

Ensures the investor gets the benefit of any better terms offered to other SAFE holders.

Who needs this?

Early-stage startup founders raising pre-seed or seed funding
Angel investors making early-stage investments
Startup accelerators and incubators
Founders who want a quick fundraising instrument without complex negotiations

When to use it

When raising a pre-seed or seed round from angel investors
When you want to avoid setting a company valuation too early
When speed is important and you need a simple investment document
When participating in an accelerator program

Frequently Asked Questions

What is the difference between a SAFE and a convertible note?

Should I use a valuation cap, discount, or both?

Most SAFEs include a valuation cap, a discount (typically 15-25%), or both. A cap-only SAFE is most common for early-stage rounds. Discuss with your investors to determine the best structure.

Are SAFE notes available in all jurisdictions?

SAFEs are primarily used in the US and follow US securities law. They can be adapted for UK use, but the legal framework differs. Consult local counsel for non-US jurisdictions.

How much can I raise with a SAFE?

There's no legal limit, but SAFEs are typically used for raises of $50K to $2M. For larger rounds, a priced equity round may be more appropriate.

Generate your safe note now

Create a customized safe note in 60 seconds with AI.

Get Started Free