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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – The Downside of SAFE Notes
Description: The Downside of SAFE Notes Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. SAFE Notes were designed to simplify the investment process. By removing many of the terms found in equity agreements, SAFE Notes reduce the complexity of startup fundraising. SAFE notes are similar to a warrant as they give the holder the right to buy shares in the future. There are drawbacks to SAFE Notes as follows: There’s no debt component that can be used for payback. SAFE notes require the holder to have a C-Corporation. Th...