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.

The introduction of the SAFE (Simple Agreement for Future Equity) in 2014 marked a return to convertible structures, allowing startups to raise funds without the complications of debt.

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

In fundraising, securing a top-tier investor who adds value can be worth millions to your company's valuation, as seen with Airbnb's experience.

The rise of convertible notes from 2005 to 2009 allowed startups to raise funds faster as the cost to start a company decreased.

Investors often chase opportunities in startups, hoping to profit from future growth, which can lead to inflated valuations that may not be sustainable.

Investing in startups should not just be about making a difference; you should also consider the potential for returns on your investment.

Most startups fail, and only a small percentage achieve significant financial success, so view equity as a tool to enhance your chances of success rather than a fixed resource to be divided.

When signing a SAFE, you might expect to own around 9% of the company based on an $800,000 investment at an $8 million cap, but this can be diluted by new money coming in during the priced round.