It is typically used by early stage companies who have not yet distributed shares to outside investors.
As the name implies, a SAFE is a simple investment agreement. It helps early-stage companies raise capital quickly without negotiating a clear valuation. That company valuation is not determined until a later round of funding.
The SAFE is intended to be a simple way to raise capital. Avoid adding terms that could cause confusion during a future round.
The terms of the SAFE should be discussed with your co-founders, existing investors, and advisors so that it properly reflects the terms of investment and the company’s best interests.