SAFEs accomplish similar goals as convertible notes, but are not debt instruments. SAFEs give investors the right to stock in a future equity round if a triggering event occurs. Startups might use SAFEs because the process is simpler, cheaper, and faster than priced equity rounds.
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SAFEs
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SAFEs accomplish similar goals as convertible notes, but are not debt instruments. SAFEs give investors the right to stock in a future equity round if a triggering event occurs. Startups might use SAFEs because the process is simpler, cheaper, and faster than priced equity rounds.