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What are your thoughts about SAFEs vs Convertible Notes?

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Written by Jasmine Sunga
Updated over a year ago

SAFEs are much more founder friendly. There are a minority of investors that, as a religious rule, not do SAFEs, but if you can get away w/ a SAFE w/o push back, a SAFE is better.

SAFEs are great as it allows you to expedite the process. For VCs it is not needed to expedite the process, for Angels, SAFEs should not be an issue.

There are plenty of angels who will be comfortable with SAFEs, especially if you are targeting pre-seed and seed investors. VCs are unlikely to entertain SAFEs and will want either a priced round or a convertible note.

SAFEs have no maturity date or interest rate unlike convertible notes where they either convert to equity or debt.

Convertible Notes are better for investors while SAFEs are better for founders. Don’t do a priced round too early as they can get to be expensive on the legal side.

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