Entrepreneurs often raise capital with a combination of convertible notes and an agreement called a SAFE, or Simple Agreement for Future Equity. A SAFE seems like a no-nonsense DIY solution for early-stage companies--but there's more you need to know about them than you might realize.
Debuted in 2013 by Y Combinator, the SAFE doesn't accrue interest. It has no maturity date or expiration date. It converts into equity on pre-negotiated terms in connection with a future priced equity round.
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Originally published by inc.com
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