Post-Money SAFEs: Investor-Friendly Option

For many years startup founders raised their early finance rounds using convertible notes. The legal costs and negotiation time for priced rounds were prohibitive. In late 2013 Y Combinator introduced the original SAFE, which stands for “Simple Agreement for Future Equity”. These became popular throughout the Silicon Valley, along with 500 Startups’ KISS (Keep It Simple, Stupid) variation, but they had some drawbacks that disturbed some investors, which could sometimes hamper a founder raising as much as she wanted.