# SAFE

*Startups & Venture Capital — Finicade finance glossary*

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.

**Also known as:** simple agreement for future equity, YC SAFE, safe note

**Related terms:** [Convertible Note](https://finicade.com/glossary/convertible-note), [Valuation Cap](https://finicade.com/glossary/valuation-cap), [Pre-Money vs Post-Money Valuation](https://finicade.com/glossary/pre-money-vs-post-money-valuation), [Dilution](https://finicade.com/glossary/dilution), [Pre-Seed](https://finicade.com/glossary/pre-seed)

Source: https://finicade.com/glossary/safe