How Safe Are SAFE Agreements?

In this article, we discuss the pros and cons of SAFE (Simple Agreement for Future Equity) agreements in early-stage fundraising. While SAFE agreements provide founders with an easy, non-dilutive funding method, they can lead to unexpected dilution during later rounds or M&A events. Entrepreneurs are advised to handle SAFEs strategically, ensuring they convert them promptly to avoid future complications. This highlights the importance of balancing initial convenience with long-term financial health when using SAFEs in fundraising.

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