SAFEs can be a powerful fundraising tool—but they also carry real risks to existing equity holders. For founders, the danger lies not in the document itself, but in misunderstanding its terms and ...
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Early-Stage Startup Deals: How Does a SAFE Work?
Editor’s note: This is part one of a two-part series about two financial instruments that angel investors use to more easily invest in early-stage startups. While this article is about SAFEs, part two ...
You finally have investor interest. A couple of angels like the idea, one says “We usually do SAFEs,” another asks if you’re open to a convertible note, and suddenly you’re deep in legal blog posts at ...
Founders frequently underestimate the equity dilution impacts of funding rounds and employee stock option plans (ESOPs). Consider two stark examples: Eric Yuan's ownership in Zoom dwindled to 22% by ...
Cake Equity reports that scaling startups are rightsizing their cap tables, favoring clarity and fit over complex systems as ...
Your cap table provides key information about your startup’s ownership and ensures everyone involved understands their stake in your company's future. Communicating the nuances of this important ...
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