In the venture capital and start-up world, Simple Agreement for Future Equity (SAFE) instruments have been used to raise funds by new business ventures since 2013. SAFEs were initially developed by Y Combinator Management, LLC (Y Combinator). Y Combinator SAFEs benefit early-stage companies by allowing them to raise money with fewer complexities than traditional preferred equity or convertible loan arrangements. Generally speaking, SAFEs are standardized instruments containing features similar to convertible debt and others that resemble equity or a prepaid forward purchase agreement. A SAFE is intended to allow an issuer to raise funding while deferring the administrative paperwork, cost, and time of a typical equity financing round. While SAFEs can offer advantages to founders and investors, they also have certain limitations.