SAFEs and Convertible Notes

Understand non-dilutive funding options

SAFEs are a common seed stage fundraising tool and are a great way to fundraise early on in a startup's journey, but how can founders leverage SAFEs without giving up too much equity early on? In this workshop, participants will learn about the mechanics, discount rate, and valuation caps for SAFEs.

Convertible notes are a common seed stage funding option that requires incurring debt in the hopes that it is converted into equity in the future. In this workshop, participants will gain an understanding of convertible notes, the different mechanics of the note, and common terms for this type of funding.
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Learning Pillar

Business Viability

Stage

Delivery

Time

35 minutes

Course Learning Objectives:

  • Define SAFEs and its intended funding goals
  • Formulate a SAFE valuation cap
  • Define convertible notes and its intended funding goals
  • Compare convertible note terms with potential funding goals

Click on a lesson below to get started:

Meet the instructor

EMILY UNDERWOOD
ASSOCIATE CLINICAL PROFESSOR
BLUHM-HELFAND DIRECTOR, INNOVATION CLINC AT UNIVERSITY OF CHICAGO LAW SCHOOL