Startup Seed Financing Instruments: Convertible Notes and SAFEs | Practical Law
https://content.next.westlaw.com/Document/If79627a5428311e598dc8b09b4f043e0/View/FullText.html?transitionType=Default&contextData=(sc.Default)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).
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).