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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 → What's the difference between a valuation cap and a discount on a SAFE? A cap sets the maximum valuation at which your SAFE converts, protecting the investor's upside if you raise your next round at a high price; a disc... Intermediate 3 resources → How do SAFEs and term sheets differ in India versus the US? India can't use the plain US SAFE directly because of company-law constraints, so founders use the iSAFE (structured as compulsorily convertible pr... Advanced 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 → 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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