Delaware Simple Agreement for Future Equity (SAFE) is a widely used legal instrument that allows startups to raise funds from investors without specifying a valuation at the time of investment. A SAFE agreement typically provides investors with the right to obtain equity in a startup at a later stage, often during a future financing round or upon the occurrence of a specified triggering event. One type of SAFE is known as the traditional SAFE, which does not provide investors with any interest or dividend payments until the conversion of the instrument into equity occurs. This type of SAFE is popular among early-stage startups looking to raise capital without burdensome terms and conditions. Another variant of the Delaware SAFE is called the SAFE with a valuation cap. This type of SAFE agreement includes a predetermined valuation cap, which establishes a maximum valuation for the startup upon conversion. If the startup achieves a higher valuation in a subsequent fundraising round, investors who hold SAFE agreements with valuation caps will convert their instruments into equity based on the capped valuation, allowing them to secure a more favorable ownership stake compared to investors who invest at a higher valuation. Additionally, there is a type of SAFE agreement called the SAFE with a discount. This agreement offers investors a predetermined discount on the valuation of the startup at the time of conversion. The discount is usually applied to the valuation established in the subsequent equity financing round or the triggering event mentioned in the agreement. The discount provision gives investors an advantage by enabling them to obtain equity at a lower price per share compared to new investors in the subsequent funding round. Delaware SAFE agreements are particularly attractive to startup founders and investors due to their simplicity and flexibility. They provide a streamlined way for companies to raise capital efficiently and allow investors to participate in the potential success of a company without immediate valuation determinations. The use of Safes has become increasingly prevalent in the startup ecosystem, offering a balanced, founder-friendly approach to early-stage fundraising.