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 New York, 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, but rather are set by the parties involved, and the original SAFE template was created by Y Combinator. While New York law does not specifically regulate SAFEs, they are subject to general securities laws and regulations. Companies using SAFEs must ensure compliance with both federal securities laws and the New York State securities regulations, often referred to as the 'Blue Sky Laws.' This includes proper registration or finding an applicable exemption, and adherence to anti-fraud provisions. It's important for both investors and companies to consult with an attorney to understand the implications of using a SAFE in their specific circumstances, as it may not be suitable for all situations.