Both SAFEs and Convertible notes are hybrid investment vehicles used by investors and founders to fund startups. Founders need to choose which one to use and when.
Valuation Caps are often thought of as the Value of the startup. However, Valuation Caps are NOT the value of the company and the conversion of SAFEs and Convertible notes into equity is a little tricky.
A Convertibles Note is a short term loan commonly used to raise funding by startups. There’s a lot of confusion and misunderstanding about how they work and there are aspects that aren’t so “simple”.
SAFEs are used as an investment vehicle to fund startups. There’s a lot of confusion and misunderstanding about how they work and there are aspects that aren’t so “simple”.
Entrepreneur’s Guide to the Accounting and Finance Industry
The industry has a lot of pitfalls and poor service providers. Being able to navigate the industry will allow you to save money, time and speed up the growth of the business.