SAFS can offer efficiency and usefulness by using a simple form. With fewer variables to understand and negotiate, terms can be agreed more quickly. A SAFE is similar to a convertible loan in that both investors have the right to obtain shares at a preferential price in the future. However, the two instruments are fundamentally different, as the convertible loan is debt, but not a SAFE. You should consider the following differences when choosing whether you want to create a convertible bond or a SAFE: Some issuers have offered a new type of collateral – which they have called safe – as part of some crowdfunding offerings. The acronym stands for Simple Agreement for Future Equity. These securities carry risk and are very different from traditional common shares. If a company generates enough capital not to need additional equity funding cycles, the amount invested under SAFE can never be converted into equity. At the end of 2013, Y Combinator published the Investment Instrument Simple Agreement for Future Equity (SAFE) as an alternative to convertible bonds.  Since then, this investment vehicle has become popular in both the United States and Canada, due to its simplicity and low transaction costs. .