This chapter briefly discusses the environment that led to the need for SAFE contracts, beginning with entrepreneurs’ need for capital for their businesses, and the different types of investors capable of supplying that capital. The chapter then briefly discusses the recent history that led to the wide use of convertible notes for capital investment in startups, and some pros and cons of such notes. Finally, the development of SAFEs and their current use is covered.

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The Need for SAFEs

  • Michael J. Maher,
  • Ron van der Meyden

摘要

This chapter briefly discusses the environment that led to the need for SAFE contracts, beginning with entrepreneurs’ need for capital for their businesses, and the different types of investors capable of supplying that capital. The chapter then briefly discusses the recent history that led to the wide use of convertible notes for capital investment in startups, and some pros and cons of such notes. Finally, the development of SAFEs and their current use is covered.