United States:
4 Ways To Avoid The Confusion Of Financing Documents
So-called 'simple agreements' are more complex than you might think.
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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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