The SAFE is a kind of warrant that gives investors the right to obtain shares of the company, usually preferred shares, if and if there is an upcoming valuation event (i.e. the next time the company increases, acquires “valued” equity or submits an IPO). Some issuers have offered a new type of collateral as part of some crowdfunding offerings – which they have called safe. The acronym stands for Simple Agreement for Future Equity. These securities carry risk and are very different from traditional common shares. As the Securities and Exchange Commission (SEC) states in a new Investor Bulletin, a SAFE offering, whatever its name, cannot be “simple” or “safe.” Whether you are using the safe for the first time or already have safes, we advise you to read our Safe User Guide (a substitute for the original Safe Primer). 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. However, as use has become increasingly frequent, concerns have been raised about the potential impact on entrepreneurs, particularly when multiple SAFE investment cycles are completed prior to an assessed capital cycle, as well as the potential risks for non-accredited crowdfunding investors who could invest in equity of companies that, realistically, will never receive venture capital funding and therefore never trigger a conversion into equity.