Generate a Simple Agreement for Future Equity based on Y Combinator's post-money SAFE. Choose valuation cap, discount, MFN, or combined terms with optional side letter provisions.
I built this SAFE agreement generator based on Y Combinator's post-money SAFE, the most widely used early-stage investment instrument in Silicon Valley. SAFEs were created by YC in 2013 as a simpler alternative to convertible notes -- no interest accrual, no maturity date, no debt on the balance sheet.
The post-money SAFE (introduced by YC in 2018) includes all SAFE investments in the post-money valuation, giving investors certainty about their ownership percentage at conversion. With a $10M post-money cap and a $100K investment, you know you're getting exactly 1% -- regardless of how many other SAFEs the company issues. Pre-money SAFEs calculated ownership differently and created ambiguity around dilution.
This generator supports all four standard SAFE variants: (1) Valuation Cap only -- the most common, investor converts at the cap regardless of how high the Series A valuation is; (2) Discount only -- investor gets a percentage discount to the Series A price per share; (3) Cap + Discount -- investor gets whichever produces more shares, most investor-friendly; and (4) MFN (Most Favored Nation) -- no cap or discount, but investor gets amended to match any better SAFE terms issued later. Choose based on your negotiation dynamics and the investor's leverage.
This generator includes optional side letter provisions commonly negotiated alongside SAFEs: pro-rata rights (right to maintain ownership percentage in future rounds), information rights (quarterly financials, annual budget), board observer rights, and major investor thresholds. These are typically reserved for lead investors or investors writing larger checks.