For many start-ups, raising capital is a huge area of concern. Several means exist which are used to raise money, ranging from Crowdfunding, Business Loans to Venture Capital funding. Keeping the above in consideration, there is a presence of certain financial instruments which facilitate raising capital for business enterprises. A prominent and modern example is the SAFE
AFE stands for (Simple Agreement for Future Equity). Introduced by YCombinator, an American start-up accelerator in 2013. It has since been used by a lot of start-ups as an instrument for early-stage capital raising.
