Education Center
Q

What are the key parameters in a SAFE?

A

There are 3 main parameters that go into a SAFE document, they function much in the same way that these work for convertible notes:

  1. Is there a valuation cap or not? if yes, what is the valuation cap?

  2. Is there a discount or not? if yes, what is the discount?

  3. Is there a most favored nations clause or not?

Want to learn even more about startup investing?