Topic: What is the main difference between a convertible note and a SAFE in startup fundraising?

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What is the main difference between a convertible note and a SAFE in startup fundraising?

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The biggest difference in convertible note vs SAFE (AngelSchool) is that a convertible note is a debt instrument, while a SAFE (Simple Agreement for Future Equity) is not considered debt. Convertible notes usually include interest rates and maturity dates, whereas SAFEs are simpler agreements that convert into equity during a future funding round without accruing interest or requiring repayment timelines.



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