Founders, Entrepreneurs and Startups

Investing in a startup can be an exciting opportunity, but it’s important to approach it with a critical eye and negotiate favorable terms to protect your investment. This is especially true when investing through a Simple Agreement for Future Equity (SAFE), a popular investment instrument used by early-stage startups. In this article, we’ll explore some … Read more How to negotiate favorable terms for a SAFE investment?

Startups use Simple Agreements for Future Equity (SAFEs) to raise funds without the hassle of complicated valuations or equity sales. These agreements allow investors to invest money into the company in exchange for equity at a later time, usually at the time of a future financing round or exit event. One of the most common … Read more The Advantages and Disadvantages of Valuation Cap-Only SAFEs in a Bear Market, and Why Discounts Can Help

SAFEs (Simple Agreement for Future Equity) have become a popular form of startup financing due to their simplicity, flexibility, and low transaction costs. However, like any form of financing, SAFEs are subject to various regulatory considerations that startups and investors need to be aware of to ensure compliance with securities laws and regulations, and to … Read more Regulatory Considerations for SAFEs: Compliance with Securities Laws and Tax Implications

Startups looking to raise capital have several options available to them, including using a Simple Agreement for Future Equity (SAFE) or a priced round. Both SAFEs and priced rounds have their advantages and disadvantages, and startups must consider which option is best suited for their specific circumstances. In this article, we will explore the differences … Read more Using SAFEs vs. Priced Rounds: Understanding the Differences in Terms, Transaction Length, and Costs