Fillable YC SAFE Form (v1.2)

What Is the YC SAFE?

The Simple Agreement for Future Equity (SAFE) is a financing instrument created by Y Combinator that allows startups to raise capital from investors without the complexity of traditional convertible notes. The SAFE is not a debt instrument -- it is an agreement that gives investors the right to receive equity in a future priced round.

Version 1.2 of the YC SAFE incorporates updates and refinements based on years of widespread use across the startup ecosystem.

Key Features of the SAFE v1.2

• No interest rate or maturity date -- unlike convertible notes, SAFEs do not accrue interest or have a repayment deadline
• Simple and founder-friendly -- a short, standardized document that reduces legal costs
• Converts to equity upon a qualifying financing event, dissolution, or IPO
• Widely recognized -- used by thousands of startups and accepted by most institutional investors
• Multiple variations -- available with valuation cap, discount, or both (MFN)

Types of SAFE Agreements

Valuation Cap Only

The investor receives equity at the lower of the valuation cap or the price per share in the next priced round. This provides a ceiling on the conversion price.

Discount Only

The investor receives equity at a discount (typically 15-25%) to the price per share in the next priced round.

Valuation Cap and Discount

The investor receives equity at the lower of the valuation cap price or the discounted price -- whichever is more favorable to the investor.

Most Favored Nation (MFN)

If the company issues subsequent SAFEs with better terms, the MFN SAFE holder can adopt those improved terms.

How to Fill Out the YC SAFE

1. Select your SAFE type -- choose valuation cap, discount, MFN, or a combination
2. Enter company information -- legal name, state of incorporation, and address
3. Enter investor information -- name, entity type, and contact details
4. Set financial terms -- valuation cap amount and/or discount rate
5. Review and sign -- both parties review the agreement and execute it

Fill Out the YC SAFE Online with Popform

Popform streamlines SAFE agreement preparation:

• AI-powered guidance explains each clause in plain language
• Auto-populated fields reduce data entry and errors
• Multiple SAFE types supported in a single workflow
• Instant PDF generation for signing and record-keeping
• Free to use -- no legal fees required for form preparation

Frequently Asked Questions

Is the YC SAFE legally binding?

Yes. Once signed by both the company and the investor, a SAFE is a legally binding agreement. However, it is recommended to have legal counsel review any investment document before execution.

When does a SAFE convert to equity?

A SAFE converts to equity upon a qualifying financing event (typically a priced equity round), a dissolution event, or an IPO. The conversion terms depend on whether the SAFE has a valuation cap, discount, or both.

How is the SAFE different from a convertible note?

Unlike convertible notes, SAFEs do not have an interest rate, maturity date, or repayment obligation. They are simpler documents designed to minimize negotiation and legal costs during early-stage fundraising.

Can I use a SAFE outside of Y Combinator?

Absolutely. The YC SAFE is open-source and widely used by startups regardless of their affiliation with Y Combinator. It has become a standard instrument for early-stage fundraising globally.