SAFE Convertible Note

Definitions

1. A SAFE-style early-stage financing instrument that behaves like a future-conversion claim rather than immediate priced equity, used to raise money before a full valuation round. In practice, founders and investors care about the cap, discount, and conversion mechanics far more than the label itself.

   In plain English: An early fundraising instrument that turns into equity later under defined conversion rules.

   Example: "The pre-seed came together quickly because most angels were comfortable using a SAFE convertible note with a standard cap."

Related Terms

• Series A / B / C
• Term Sheet
• Down Round
• Dilution
• Seed Round
• Convertible Note
• Initial Coin Offering
• Valuation Cap