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CL

Carolynn Levy

03/07/18

@ Y Combinator

The SAFE is not a loan; it does not accrue interest and does not have a maturity date.

Video

YC

Carolynn Levy and Kirsty Nathoo - Startup Investor School Day 1

@ Y Combinator

Carolynn Levy and Kirsty Nathoo - Startup Investor School Day 1

03/07/18

Related Takeaways

KN

Kirsty Nathoo

10/17/18

@ Y Combinator

SAFEs are not debt; they do not have an interest rate or a maturity date, which distinguishes them from convertible debt.

CL

Carolynn Levy

09/20/19

@ Y Combinator

The SAFE, or Simple Agreement for Future Equity, is a modern alternative to convertible promissory notes, designed to simplify early-stage fundraising by eliminating debt and reducing legal complexities.

CL

Carolynn Levy

03/07/18

@ Y Combinator

The SAFE is a five-page document that simplifies the investment process compared to traditional financing documents.

CL

Carolynn Levy

03/07/18

@ Y Combinator

The SAFE, or Simple Agreement for Future Equity, is designed for very early-stage startups that haven't raised a priced round yet.

DC

Dalton Caldwell

10/23/24

@ Y Combinator

A SAFE, or Simple Agreement for Future Equity, is an alternative to a convertible note that allows startups to quickly raise funds without the complexities of a priced round.

YC

Y Combinator Cast

03/07/18

@ Y Combinator

The SAFE (Simple Agreement for Future Equity) allows investors to convert their investment into equity at a later date, but the exact ownership percentage isn't known until the priced round occurs.

YC

Y Combinator Cast

03/07/18

@ Y Combinator

The SAFE is generally preferred over debt for lifestyle companies, as debt can lead to unnecessary company failures when investors call it in.

YC

Y Combinator Cast

03/07/18

@ Y Combinator

If a company becomes self-sustaining and does not raise a priced round, the SAFE does not address this situation, which can leave investors uncertain about their investment's future.

GR

Geoff Ralston

10/11/18

@ Y Combinator

When you raise funds through a SAFE (Simple Agreement for Future Equity), you manage the money as a fiduciary, meaning you have responsibilities to use it for the company's benefit, not for personal use.