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VC terms you need to know
Y Combinator, the leading accelerator program, unveiled a new type of equity called a SAFE, which stands for Simple Agreement for Future Equity. SAFEs have some of the good features of convertible notes, but because they are not actually a form of debt, they avoid some of the problems. Y Combinator has open-sourced the documents and published them
... See moreDavid S. Rose • Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups
If the angel plans from the start to convert their loan to equity, then you do not have to set it up as a traditional loan with a maturity date and interest payments. Instead, you can put together a Simple Agreement for Future Equity (SAFE). This is not that different from a convertible debt – except that it is not a debt! Instead, the angel expect
... See moreAlnoor Bhimani • Financial Management for Technology Start-Ups
