What convertible notes are for and what they are not

What convertible notes are for and what they are not

Tl;dr: Convertible notes are used for early-stage startups and for bridge loans. They are debt which can convert into equity in future. There is a reading list to understand more I had three consulting calls this week with experienced business people that didn’t grasp what convertible notes actually were, so I’m going to spell them out briefly. If you want …

Differences between SAFE and convertible notes

Differences between SAFE and convertible notes

Tl;dr: Do you understand the difference between a SAFE and convertible note? If not, we are going to break down the key things you need to know so you won’t be taken advantage of. In short, SAFE is not as great as you think. Intro So you have read about convertible notes, and depending on where you live, SAFEs (They’re …

Post Money SAFE CAP Explained Line by Line

Post Money SAFE Cap Explained Line by Line

Tl;dr: SAFE cap version of the Y-combinator post-money SAFE financing document explained line by line explanation. If you are planning on raising an angel/seed round with a new post-money SAFE you need to know what is in the legal agreement. You aren’t a lawyer, so I’m going to explain the whole document in simple English. I’m going to cover each …

Post Money SAFE Cap and Discount Explained Line by Line

Post Money SAFE Cap and Discount Explained Line by Line

Tl;dr: SAFE cap and discount version of the Y-combinator post-money SAFE financing document explained line by line explanation. If you are planning on raising an angel/seed round with a new post-money SAFE you need to know what is in the legal agreement. You aren’t a lawyer, so I’m going to explain the whole document in simple English. I’m going to …

Post Money SAFE with Discount Explained Line by Line

Post Money SAFE Discount Only Version Explained Line by Line

Tl;dr: SAFE discount version of the Y-combinator post-money SAFE financing document explained line by line explanation. If you are planning on raising an angel/seed round with a new post-money SAFE you need to know what is in the legal agreement. You aren’t a lawyer, so I’m going to explain the whole document in simple English. I’m going to cover each …