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Safe

Convertible debt, without the debt

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Discussion

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Nathan Bashaw
@nbashaw · Co-founder and CEO of Hardbound
To me this feels like a product, in the same way a free app is a product. They don't directly monetize, but you can use it and get value out of it. Curious to hear from folks who've raised money - do you see any disadvantage to using a Safe rather than a regular convertible note?
Dan Friedman
@_danfriedman · Data Scientist
@alexschiff - I'm interested to hear your thoughts.
Alex Schiff
@alexschiff · Cofounder and CEO, Fetchnotes
It seems very similar to convertible equity which was put out awhile ago. Does anyone know what kind of adoption that has had? The problem is investors, especially more traditional ones, don't like docs that are not standard. You might end up spending even more in legal fees even if the docs are easy just because the lawyers are going through them with a mo… See more
Frank Denbow
@frank_denbow
This is really interesting. I've been reading a lot about this recently and one of my biggest concerns with convertible notes was the risk if things a) dont go well and the insolvency threat or b) go well enough to run off of revenue past the maturity date (shouldn't that be the goal of most companies?). Although the safe does seem to handle those two scenar… See more
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Nathan Bashaw
@nbashaw · Co-founder and CEO of Hardbound
That's a great point! Even though founders are getting more relative power, investors still have a lot of leverage. Curious to hear your thoughts on this, @joshelman