SAFE, Convertible Note, Valuation Cap, and Equity - Explained

This video is going to outline some fundamental principles of investing as it related to tech startups. Outline SAFE 0:00 - 0:40 Pricing 0:40 - 1:15 SAFE 1:15 - 1:50 Rate 1:50 - 2:50 Valuation Cap 2:50 - 3:30 Incentives 3:30 - 3:57 In late 2013, the Y combinator introduced the original SAFE. The User Guide on the Y combinator website notes that when SAFEs were first introduced, startups and investors were primarily using convertible notes for early-stage fundraising and the original SAFE was intended to be a replacement for those convertible notes. SAFEs were intended to provide a simple means for investors to fund early-stage companies, using documents (contracts) originating on the Y combinator’s website that were sometimes modified and customized within the start-up community to fit the needs of the parties. The Y combinator website now refers to the “original” SAFE and the “new” SAFE, and notes that the difference between the two contract forms is that the new SAFE is intended to be as a post-money security. #startup #equity #angelinvesting ______________________________________________________________________ If you’re looking to ship your nocode project faster or just want to get smarter about the emerging nocode/lowcode trend then join the only community for nocoders who are serious about building better, faster, products. State Change Pro (https://statechange.ai/) is a community of seasoned veterans and industry CTOs who are available to work through your nocode questions together. We’ve helped hundreds of business owners compose solutions faster using the latest and greatest nocode tools. We have direct relationships with dozens of nocode platforms and are friends with many of the founders. We’ve worked with hundreds of Fortune 500 companies. If you want to stop wasting time and finally deliver your project to your customers then click the link in the description below and join the only nocode community for builders who want to ship. https://statechange.ai/