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 Oklahoma, 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 SAFE is not a debt instrument, so it does not accrue interest or have a maturity date, and it does not provide investors with immediate equity or a promise of a specific number of shares. Instead, the number of shares and the price per share are determined during a subsequent financing round based on the terms set forth in the SAFE. The use of SAFEs in Oklahoma is subject to general contract law and securities regulations. Companies considering a SAFE should ensure compliance with both state statutes and federal law, including securities laws enforced by the Securities and Exchange Commission (SEC). It's important for both investors and founders to understand the terms of a SAFE and to consider whether it aligns with their investment or fundraising goals. An attorney with experience in securities and startup financing can provide guidance on the appropriateness and implications of using a SAFE in Oklahoma.