Every year I teach classrooms full of students who leave class understanding the basics of how to search for product/market fit—and thinking their next goal is to “get funded.” That’s a mistake. There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to…
Simple Agreements for Future Equity (“SAFE”) and Convertible Notes are two
popular funding documents used by startup companies and investors in
early-stage funding deals. They are both convertible securities, meaning
that the investor provides funding to a startup today with the expectation
of converting it into ownership or equity in the company later.