SAFE
Also called: simple agreement for future equity, YC SAFE, safe note
A SAFE gives an investor the right to shares in a future priced round rather than shares today, avoiding the cost of setting a valuation early. Unlike a convertible note it isn't debt: no interest, no maturity, nothing to repay. The danger is invisible accumulation — several SAFEs at different caps can convert into far more dilution than a founder expected until the moment they all price.