SAFE agreement
Early-stage investment instrument, not a loan
A Simple Agreement for Future Equity: an investor gives a company cash now in exchange for the right to receive shares later, typically when the company raises a priced financing round. Unlike a loan, a SAFE carries no interest and no maturity date, which is why it has become a common way for Canadian pre-seed and seed-stage companies to raise money quickly without negotiating a full valuation.
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