Y Combinator SAFE Documents
The SAFE (Simple Agreement for Future Equity) is an early-stage investment instrument introduced by Y Combinator in 2013. YC publishes these documents openly; below are the three main SAFE variants, the Pro Rata Side Letter, and YC’s explanatory user guide.
These documents are designed for the Delaware C-Corp structure. Direct use by a Turkish Limited Şirket or Anonim Şirket is legally problematic and creates incompatibility with the Turkish Commercial Code. To replicate similar structures inside a Turkish entity, jurisdiction-specific adaptations are required — consult Turkish counsel.
All rights belong to Y Combinator. Vircon Legal links these documents only for reference; no copyright is claimed and no modifications are made. Original source: ycombinator.com/documents
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SAFE — Valuation Cap Only
The most common variant. The investor secures a hard ceiling (cap) on the conversion valuation. No discount applied.
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SAFE — Discount Only
The investor receives a fixed discount (typically 15-25%) off the price of the next priced round. No cap.
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SAFE — MFN Only (No Cap, No Discount)
The most founder-friendly variant. The investor only gets Most Favored Nation rights — the option to inherit better terms from subsequent SAFEs.
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Pro Rata Side Letter
Optional side letter to a SAFE. Grants the investor pro rata participation rights in the next priced round.
SAFE User Guide
YC’s official user guide for the SAFE variants. Conversion mechanics, sample calculations, pro rata explanation, and best practices — by Carolynn Levy, February 2023.