SAFEs and convertible notes for your first raise

Raise on a SAFE or a convertible note, with terms you understand

Most early rounds in the US use the Y Combinator post-money SAFE. You still choose the valuation cap, any discount, whether to add a most favored nation clause, and whether an investor gets a pro rata side letter. A convertible note is debt instead, so it also needs an interest rate, a maturity date and rules for what happens if no priced round comes. An independent California attorney prepares the documents for your deal and explains how they convert. The attorney also lists the securities filings to coordinate, such as a Form D with the SEC within 15 days of the first sale under Rule 506(b) and a California notice under Corporations Code section 25102(f). Get a SAFE prepared for your round by an independent California attorney for a fixed fee of $500.