SAFEs vs Convertible Notes | What Founders Must Know Before Raising Capital

In this episode of Capital Compass, we break down two of the most common early-stage funding instruments — SAFEs (Simple Agreement for Future Equity) and Convertible Notes. While they’re often confused or used interchangeably, they carry key differences in legal structure, risk, conversion mechanics, and impact on your cap table.

We cover: • What SAFEs and Convertible Notes actually are • The pros and cons of each instrument • The meaning of valuation caps and discounts • What founders often miss when raising via notes or SAFEs • How to avoid costly dilution surprises If you’re raising your first round — or advising a founder who is — this episode will help you choose the right funding path and set terms with confidence.

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