Startup Seed Financing Instruments: Convertible Notes and SAFEs | Practical Law

Startup Seed Financing Instruments: Convertible Notes and SAFEs | Practical Law

This Practice Note discusses the key terms and provisions of certain non-equity instruments that early-stage startup companies use to raise capital from angel investors, friends, and family in their seed rounds of financing. This Note describes these instruments in detail: the convertible note (also referred to as a convertible promissory note, bridge note, or convertible debt) and the simple agreement for future equity (SAFE).

Startup Seed Financing Instruments: Convertible Notes and SAFEs

Practical Law Practice Note w-000-5245 (Approx. 20 pages)

Startup Seed Financing Instruments: Convertible Notes and SAFEs

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
This Practice Note discusses the key terms and provisions of certain non-equity instruments that early-stage startup companies use to raise capital from angel investors, friends, and family in their seed rounds of financing. This Note describes these instruments in detail: the convertible note (also referred to as a convertible promissory note, bridge note, or convertible debt) and the simple agreement for future equity (SAFE).