# What is SAFE?

An agreement where the investor pays now and gets shares later, when the startup raises a priced round. Short for Simple Agreement for Future Equity, it has no interest and no maturity date, so the wait for shares can be long.

## In real work

Priya wired $25,000 on a SAFE in March and will only see shares on the cap table when the scheduling startup closes its priced seed round.

## Related terms

- [Valuation Cap](https://prompthausapp.com/learn/valuation-cap.md)
- [Dilution](https://prompthausapp.com/learn/dilution.md)
- [Pro Rata](https://prompthausapp.com/learn/pro-rata.md)
- [Limited Partner](https://prompthausapp.com/learn/limited-partner.md)
- [Carried Interest](https://prompthausapp.com/learn/carried-interest.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews. Then it quizzes you until the word sticks. One term a day on iPhone.

- Category: Venture
- HTML: https://prompthausapp.com/learn/safe
- App Store: https://apps.apple.com/us/app/prompthaus-ai-vocabulary/id6776314407