The Hidden Pitfalls of Using Convertible Notes and SAFEs for Startup Funding
When startups look for early-stage funding, they often turn to convertible notes or SAFEs (Simple Agreements for Future Equity) because they’re quick and flexible. However, these tools come with some unintended consequences that both founders and investors should be aware of—especially when it comes to liquidation preferences. What Are Liquidation Preferences? In traditional preferred stock […]
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