Simple Agreement for Future Equity, or SAFE, is an increasingly popular instrument for fundraising especially at the earliest stages of a startup. SAFEs were really formalized by Y-Combinator in late 2013 (more on their website) and is a third major alternative, aside from equity and debt. Much has been written around SAFEs, this post is focused on highlighting the biggest pros and cons with an eye on why they aren’t uniformly the best option. 1) Definitions — Think of fundraising as follows: i) Equity — An investor gives capital, you give them shares / ownership in your company. ii) Debt…...
SAFE: Great (Esp For Entrepreneurs), As Long As Done Safely
2 min read
