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 […]
Tag Archives: SAFE
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 […]