5/16/25

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.

Previous

How to Handle a “Come Back When You Have a Lead”?

Next

Revenue-Based Financing vs Equity: Which Is Right for Your Startup?