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SAFE Notes vs. Convertible Notes: Key Differences and When to Use Each
Understanding SAFE and Convertible Notes
Early-stage startups and investors commonly use Simple Agreements for Future Equity (SAFE) and Convertible Notes to raise capital without immediately setting a valuation. While they serve a similar purpose—deferring valuation until a future financing round—there are key differences in their structure, risks, and ideal use cases.
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