We plan to bring eChai across 100 cities in India. It starts with eChai Startup Demo Day on 26 September, all in person. 13 cities confirmed, 701 founders registered. Any city that reaches 20 interested founders is on too. See your city
Raise money

Valuation, SAFEs & term sheets

Understand the paper before you sign it.

Level All Beginner Intermediate Advanced
Who's asking Everyone Idea-Stage Founder Builder Launcher Grower Technical Solo Founder Non-Technical Founder Women Founder Anywhere Founder Repeat Founder

Showing 7 of 18 questions. Clear filters

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 →
eChai Partner Brands The partnership →