Raise money

Valuation, SAFEs & term sheets

Understand the paper before you sign it.

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What is a SAFE and how does it actually work? A SAFE (Simple Agreement for Future Equity) lets an investor give you money now in exchange for equity later, when you raise a priced round, withou... Beginner 3 resources → How is my startup's valuation actually decided at the early stage? At seed there's no spreadsheet truth; valuation is set by market comps, your traction, the strength of the team, and mostly by supply and demand fo... Intermediate 3 resources → A SAFE has no valuation cap and no discount. Should I ever sign it? Almost never as a founder, because an uncapped, undiscounted SAFE means the investor is taking early risk but getting priced at whatever your next ... Beginner 3 resources → Can I even use a SAFE in India, or do I have to do a CCPS or convertible note? A US-style SAFE has no clean legal home under Indian company law, so most Indian-incorporated startups raise early money through Compulsorily Conve... Intermediate 3 resources → Should I raise on a SAFE or just do a priced round at seed? Raise on a SAFE when speed and low legal cost matter and you're taking money from a handful of angels, because you skip the negotiation and lawyer ... Intermediate 3 resources → The valuation the investor is offering feels low. How do I know if I should push back or take it? Chasing the highest possible valuation is one of the most common early-stage mistakes, because a valuation your traction can't grow into sets you u... Beginner 3 resources → How do I read a term sheet without a lawyer so I know which clauses to actually fight over? Read every term sheet knowing that only a few clauses truly move your outcome: valuation and pool (dilution), liquidation preference (exit payout),... Beginner 3 resources →
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