A SAFE (simple agreement for future equity) is a standardized document used by startup companies for early-stage fundraising. A SAFE investment may convert to equity in the company in a future round of fundraising (Series A, for example) and does not give a SAFE investor a specific number of shares at the time of the investment. The price of shares owned by a SAFE investor are determined in the future round of fundraising.

The terms of a SAFE are intended to be balanced between the interests of the investors, and the founders or existing owners of the company, but a SAFE may not be appropriate for every early-stage company or investor.

The SAFE was created by Y Combinator, a well-known tech accelerator, in 2013.

In Georgia, as in other states, a SAFE (Simple Agreement for Future Equity) is a financial instrument used by startups during early-stage fundraising. It allows investors to convert their investment into equity at a later date, typically during a future equity financing round such as Series A. The terms of a SAFE are not standardized by law and can vary, but they generally aim to balance the interests of investors and company founders. The SAFE does not provide immediate equity or a specific number of shares to the investor; instead, the number of shares and the price per share are determined during a subsequent financing round based on pre-agreed terms. While the SAFE was created by Y Combinator and is widely used, it is not suitable for all companies or investors. Georgia does not have specific statutes governing SAFEs, so they are subject to general contract law and securities regulations. Companies considering using a SAFE should consult with an attorney to ensure compliance with federal securities laws and state regulations, and to tailor the agreement to their specific needs.