A SAFE, a simple agreement for future equity, is not a loan. It has no interest and no due date, and it usually turns into shares at a future priced round. If that round never comes, it may never convert.
What the film says
In venture capital, you can invest today, and get no shares. It's called a SAFE. A simple agreement for future equity. Say an investor puts in a hundred thousand dollars. No shares yet. No price. No interest. No due date. It isn't a loan. It's waiting for one thing: the next priced round. Say that round sells shares at two dollars. A hundred thousand becomes fifty thousand shares, before any discount or cap. But some companies never hold that round. Then it may never turn into shares. So why do investors care? The check is real today. The shares depend on a round that hasn't happened. It's a promise of shares, not shares.
A simple example with round numbers, not advice. Terms vary by fund.
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