<p data-start="83" data-end="672">A Simple Agreement for Future Equity (SAFE) is a funding agreement that allows startups to raise capital from investors in exchange for future company equity. Instead of receiving shares immediately, investors obtain the right to convert their investment into equity during a future financing round. Unlike traditional loans, SAFEs usually do not include interest rates or maturity dates. <span class="hover:entity-accent entity-underline inline cursor-pointer align-baseline"><span class="whitespace-normal">Angel School</span></span> explains that SAFE agreements are widely used by early-stage startups because they simplify fundraising and reduce legal complexity during seed-stage investments.