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 the company's founders or current owners. While Georgia does not have specific statutes governing SAFEs, they are subject to general contract law principles and securities regulations. Companies using SAFEs must ensure compliance with both state and federal securities laws, including disclosure requirements and exemptions from registration. It's important for both investors and companies in Georgia considering a SAFE to consult with an attorney to understand the implications under current securities regulations and to ensure the SAFE is structured appropriately for their specific situation.