YC Safe Form (v1.2)

What is a YC Safe Form

The YC Safe (Simple Agreement for Future Equity) form, created by Y Combinator, has become one of the most popular forms to simplify the process of raising early-stage startup capital. Instead of giving investors immediate equity, a SAFE allows them to invest money in exchange for the right to receive equity at a future date, typically when the company raises a future funding round. This structure provides flexibility for both startups and investors, making early-stage fundraising more streamlined and founder-friendly.

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How to Fill Out a YC Safe Form

Filling out a YC Safe form involves understanding a few key pieces of information:

1. Company Information: You’ll need to input details about your startup, including the legal name, date of incorporation, and principal place of business.
   

2. Investor Information: Include the name and details of the investor who is purchasing the Safe agreement.
   

3. Investment Amount: Specify the amount of money the investor is contributing under the Safe.

4. Valuation Cap and/or Discount Rate: You can include terms like a valuation cap or discount rate, which determine the conversion of the Safe into equity during the next priced financing round.
   
   
5. Signature Section: Both the company’s representative and the investor need to sign and date the form to make it legally binding.

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When to Use a YC Safe Form

The YC Safe form is typically used by early-stage startups that are raising pre-seed or seed funding. It is particularly useful in situations where the company is not ready for a priced equity round but wants to raise funds from investors. The Safe form helps avoid the complications and expenses that come with issuing immediate shares or determining a valuation early on.

• During early fundraising rounds (pre-seed, seed)
• When you want a simpler, faster alternative to traditional equity financing
• If you’re aiming to raise funds without determining an immediate valuation for your company

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Get a Free Fillable YC Safe Template

If you’re raising funds for your startup, using a properly structured YC Safe form is essential. You can save time by using a pre-filled, easy-to-complete version of the Safe. Our free fillable YC Safe template allows you to quickly customize your document with your company’s and investors’ details, so you can focus on fundraising.

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Get Help Filling a YC Safe Form

Popform makes it easy to get help while filling out a YC SAFE form. Simply ask any questions to the AI assistant built into every Popform filling experience. Popform’s AI assistant is incredibly helpful but is not a replacement for legal advice. 

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Download a Free YC Safe Form

Need a ready-to-use version of the YC Safe form? Download our free YC Safe form template to make sure that your fundraising process goes smoothly. The form is designed to be easily customizable, and it follows Y Combinator’s standardized format.