In recent years, startup companies have Equity—commonly referred to as SAFEs—as a tool to streamline and fast-track the process of raising capital from investors In one sense, SAFEs are sophisticated instruments.

They can be used to quickly facilitate large investments in startups that are difficult to value at the time of the investment. But SAFEs are also, in many ways, simpler than traditional avenues for raising capital, such as selling equity or debt financing.

Read More: New York Law Journal