- SAFE — Simple Agreement for Future Equity
- Y Combinator instrument that converts to equity at the next priced round. Has a valuation cap and/or discount. No interest or maturity, unlike convertible notes. Default seed instrument since ~2018.
- SAFE: post-money
- YC 2018+ default. Cap references post-money valuation, so a $10M cap SAFE with $1M check = exactly 10% ownership at conversion. Dilution from later SAFEs falls on founders, not earlier SAFE holders.
- SAFE: pre-money
- Original 2013–2018 SAFE. Cap references pre-money valuation; ownership at conversion depends on what comes after. Harder to reason about with multiple SAFEs stacked. If a counterparty proposes pre-money SAFE, push back — post-money is now standard.
- Sales-led growth
- GTM motion where outbound + AEs drive acquisition (vs. self-serve product-led). Higher ACVs, longer cycles. Typical for enterprise SaaS. Different metrics matter: pipeline coverage, ramp time, magic number.
- Scout (VC scout)
- Operator/founder deploying small checks ($25K–$200K) on behalf of a VC firm under a sub-fund. Sequoia popularized the format. Scout investments often signal future firm interest, but the firm isn't bound.
- Secondary
- Sale of existing shares from one holder to another (vs. primary, where the company issues new shares). Founders and early employees sometimes sell 5–15% of holdings in Series B+ rounds. Tax treatment and ROFR/co-sale rules apply.
- Section 1202
- US tax code section governing QSBS. Up to $10M of gain (or 10× basis) tax-free at federal level on C-corp shares held 5+ years if the company met QSBS criteria when stock was issued. Document QSBS eligibility annually.
- Seed extension
- Additional SAFE/note round between seed and Series A, usually at the same or modestly higher cap. Used to extend runway before a Series A milestone. Common; not stigmatized like a bridge round unless it stretches multiple times.
- Seed round
- First substantial round for most companies, typically $1M–$5M on SAFEs at $8M–$15M post-money. Lead writes $1M–$3M; angels/microfunds fill the rest. Goal: 18–24 months of runway and credible Series A metrics.