SAFE Note (Financing)

A SAFE note is a form of financing used by early-stage startups (typically seed stage) to raise capital from investors. They are short five-page documents with standard, non-negotiable terms (other than the valuation cap). Like options or warrants, they allow investors to buy shares in a future priced round at a discount, however, unlike convertible notes, they are not debt and do not accrue interest.

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