BizSugar.com › Raising Capital › For Angels, Convertible Notes Beat SAFEs

Since accelerator Y Combinator introduced the SAFE, or structured agreement for future equity, in late 2013, they have become a popular instrument for pre-seed stage deals, particularly on the West Coast. While some investors love the innovation, I’m with New York angel David Rose in his lack of enthusiasm for the new instrument. Angel investors give up too much by replacing their convertible note with SAFEs.