There is no “safe” at the securities-based crowdfunding

The SEC’s Office of Investor Education and Advocacy issued Investor Bulletin to educate investors about a type of security, often described as a SAFE (a “Simple Agreement for Future Equity”), that may be offered in crowdfunding offerings.

What are SAFEs?

A SAFE is an agreement between you, the investor, and the company in which the company generally promises to give you a future equity stake in the company if certain trigger events occur.

According to the SEC’s Office of Investor Education and Advocacy, Despite its name, a SAFE may not be “simple” or “safe.”

Please be cautious, and consult before you invest in a “safe”.