Written by our Co-founder Dieuwke Hoogland
We see more and more questions coming around SAFE notes. The Simple Agreement for Future Equity is an arrangement originally coming from the US and being used more frequently in Europe nowadays.
A SAFE note is a founder friendly instrument where startups can attract a (pre)seed, pre revenue investment. At a SAFE note the investor will receive equity in the next priced round of the company. Attractive in comparison to a Convertible Loan is the fact that a SAFE has no Maturity Date (end date) to pay back and no interest.
As a SAFE note originates from the US, it is important to do some homework and check local tax regulations if a SAFE note should be seen as a loan or equity.
For Dutch startups, you can take a look at a comparable agreement written by Capital Waters.
Want to know more about this type of early stage investment, then take a look at these resources from:
Want to hear our thoughts? Drop us a line at hello@mastersofscale.nl.