SAFE vs. Convertible Debt For Raising Capital image
Until recently, I never heard of a SAFE, which stands for simple agreement for future equity. SAFE was created by Y Combinator to provide simpler, more easily understood seed investment. There are key differences between SAFE's and convertible debt and as an investor or founder, you need to be aware which is best for you. In Austin, I have only seen 1 SAFE investment and countless convertible debt offerings. It could simply be that SAFE's aren't as well understood or used in Austin and it's easier to go with what people know. Recently, there's been a few articles claiming that they're bad for founders and other article rebuffing that notion. Techcrunch recently released a post entitled "Why SAFE notes are ...
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