What are the advantages of SAFE vs convertible note for startups?

angelschool

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The biggest advantage of SAFE vs convertible note for startups is flexibility. SAFEs reduce legal complexity, eliminate debt from the balance sheet, and speed up fundraising. Convertible notes offer flexibility too but include investor-friendly features such as interest and maturity dates that can increase investor confidence. Startups seeking rapid fundraising often choose SAFEs, while those negotiating with institutional investors may consider convertible notes.
 
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