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 Washington State, as in other jurisdictions, 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 designed to be a simpler alternative to convertible notes, with fewer terms and no interest rate or maturity date. The terms of a SAFE are meant to be fair to both investors and company founders, but it's important to note that SAFEs are not suitable for all situations. Since its inception by Y Combinator in 2013, SAFEs have become a popular choice for tech startups seeking flexible financing options. However, companies and investors in Washington should consult with an attorney to ensure that a SAFE aligns with their financial strategy and complies with applicable state and federal securities laws.