Convertible vs SAFE — 5 Practical Principles For Startups

2 min read

Raising a round and considering whether to do convertible or SAFE? Remember that convertible is debt that turns into equity based on certain parameters and SAFE is a specific type of convertible. This is an article about the pros and cons of each. But before starting, here are some previous posts that are relevant to this conversation: 1) Convertible vs Priced 2) Convertible Notes – 4 Practical Principles 3) SAFE: Great (Esp For Entrepreneurs), As Long As Done Safely Caveat: different geographies have different norms, what is “typical” refers to the current standards in Silicon Valley. 1) Speed In SAFE…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.