A common hurdle faced by many early-stage start-ups is trying to raise capital where the company has not yet attained sufficient financial information and/or market data in respect of the business, which makes it difficult to assign a justifiable and substantiated value to the company.

SAFE (simple agreement for future equity) notes are documents that start-ups may consider using to help raise seed capital where there is limited financial data, and or a consistent source of revenue over a tracked period of time.

A SAFE note is a legally binding promise that allows an investor to purchase a specified number of shares for an agreed-upon price at some point in the future.