Document background
The Simple Agreement for Future Equity (SAFE) was originally developed by Y Combinator in the United States and has been adapted to function within the Danish legal framework. This document is typically used by early-stage companies seeking to raise capital without immediately setting a valuation or issuing equity. It provides a streamlined way to accept investments that will convert to equity at a later date, usually during a priced equity round. The agreement includes essential elements required under Danish law while maintaining the simplicity and flexibility that makes SAFEs attractive to both startups and investors. It is particularly useful for companies that expect to raise a larger priced round in the near future and want to take on interim investment without the complexity and immediate dilution of an equity round.
