TL;DR: A convertible note is a short-term loan that converts into equity when your next round triggers it. Convertible note agreement drafting decides the principal, the interest, the maturity date, the valuation cap, the discount, and the conversion triggers. These clauses control your dilution and your risk. Quick overview: This guide walks through what a […]
Tag Archives: Note
28
May
May
Quick overview: A SAFE looks like a two-page formality. It behaves like a long-term ownership decision. This guide covers exactly what a SAFE note review checks, the valuation cap divide that has opened up between AI and non-AI startups this year, why India requires an entirely different instrument than the US template, and what a […]
23
Feb
Feb
TL;DR: A SAFE and a convertible note both let an early-stage company raise money without setting a valuation today, but they are structurally different instruments. A SAFE is not debt: no interest, no maturity date, no repayment obligation. A convertible note is a debt instrument: it accrues interest and carries a maturity date that forces […]
04
Apr
Apr
TL;DR: A SAFE (Simple Agreement for Future Equity) is a financing instrument, created by Y Combinator in 2013, that gives an investor the right to equity in the future when a triggering event occurs, typically a priced funding round, without setting a valuation today. It is not debt: no interest, no maturity date, no repayment […]