If I'm not mistaken, I believe the SAFE price formula in the video is reversed. It should be the valuation divided by the number of shares, not the other way around.
thank you so much for these videos, they are really easy to learn from. Perfect! What are your book tips for someone who wants to learn more about this, being a tech startup and business in general. Thanks again for good videos
Thanks for the feedback! My favorite books really get back to the basics: The Seven Habits of Highly Effective People, Getting Things Done, The Lean Startup, Art of the Start, The E Myth Revisited, Influence - the Psychology of Persuasion, Business Model Generation, The Lean Startup, Running Lean, and the Startup Owner's Manual
Hi, Steve, thanks for your vedio. I know that when it comes to 1X participation distribution of the proceeds, the money the SAFE preferred stockholders will get corrected so that they can only get the original price they paid as of the time of investment. Howver, what about there is a 2X participation distribution? do they still only get the original price paid at the time of SAFE investment or the twice of their original price of SAFE? thanks!!!!
Missing downsides?: 1) You mentioned that SAFE may never convert, but this is a negative vs say convertible note, 2) Liquidation priority - won't debt get paid before equity (and thus SAFE)?
Agreed, the fact that a SAFE might never convert is a negative for the investor compared to Convertible Note, but that's not necessarily a negative for the entrepreneur. A SAFE, unlike a Note, cannot be "called" since it has no expiration date, and that's certainly a plus for the entrepreneur. In terms of payment priority, a Note does have an advantage for an investor over the SAFE. Since the SAFE is not a loan, I don't believe it is collectable at all if a company shuts down. In a more positive liquidation - i.e., an acquisition - both a Note and a SAFE will have terms describing how the Note or SAFE investor is paid.
I have thought about doing some deeper-dive workshops, but haven't put in the customer-discovery time to figure out what topics would be best to tackle. Fund-raising strategy with an eye toward tracking impact on the cap table is certainly one of the potential topics. I plan to put together a survey with a short list of topics to gage interest.
The SAFE agreement has already been drafted by Y Combinator, with blanks to fill in to specify the terms. But I believe it is always a good idea to have a lawyer review funding documents, and an emerging business attorney who is familiar with the deal flow in your area can also provide helpful advice on what terms are standard and expected.
A guest on The Wall Street Journal Report spoke sometime last week about making over $631,000 in 4months with a capital of $100,000, which made me realize that as a beginner i have alot to learn, so please assist me with any pointers or tips that would help me make this much profit.
Thank you very much - very helpful indeed. Adding an example of numbers can also be very good.
Thanks! For numbers, check out my videos on dilution.
If I'm not mistaken, I believe the SAFE price formula in the video is reversed. It should be the valuation divided by the number of shares, not the other way around.
Yikes - you are absolutely right - I flipped the formula. I'll add a note saying that. Thanks for catching that!
@@Startupsos Did you end up placing the note? i did not notice one when the formula came up.
Awesome session! For SAFE Price (cap
Yes - I wish there was a way to go back and edit that!
Thanks for the great video. It’s so helpful. Very simple, informative, short, concise and direct to the point. Thumbs up 👍🏼👍🏼👍🏼
Glad it was helpful!
Thank you so much! Ali khalil lebanese Lawyer.
thank you so much for these videos, they are really easy to learn from. Perfect!
What are your book tips for someone who wants to learn more about this, being a tech startup and business in general.
Thanks again for good videos
Thanks for the feedback! My favorite books really get back to the basics: The Seven Habits of Highly Effective People, Getting Things Done, The Lean Startup, Art of the Start, The E Myth Revisited, Influence - the Psychology of Persuasion, Business Model Generation, The Lean Startup, Running Lean, and the Startup Owner's Manual
Great job explaining things; thank you!
Thanks very much!
You are so very cool, Steve! Thank you!
You are very welcome
youre welcome
Thank you. Very helpful.
Hi, Steve, thanks for your vedio. I know that when it comes to 1X participation distribution of the proceeds, the money the SAFE preferred stockholders will get corrected so that they can only get the original price they paid as of the time of investment. Howver, what about there is a 2X participation distribution? do they still only get the original price paid at the time of SAFE investment or the twice of their original price of SAFE? thanks!!!!
Missing downsides?: 1) You mentioned that SAFE may never convert, but this is a negative vs say convertible note, 2) Liquidation priority - won't debt get paid before equity (and thus SAFE)?
Agreed, the fact that a SAFE might never convert is a negative for the investor compared to Convertible Note, but that's not necessarily a negative for the entrepreneur. A SAFE, unlike a Note, cannot be "called" since it has no expiration date, and that's certainly a plus for the entrepreneur. In terms of payment priority, a Note does have an advantage for an investor over the SAFE. Since the SAFE is not a loan, I don't believe it is collectable at all if a company shuts down. In a more positive liquidation - i.e., an acquisition - both a Note and a SAFE will have terms describing how the Note or SAFE investor is paid.
Very Helpful. Thank you!
You're welcome!
In a liquidity event, is there an option to convert to stock if it’s a discount, no valuation SAFE?
Is this valid in UK? England? Or only in certain countries?
Hi, Do you have any workshop to deep in this topics to see scenarios and manage the equity plans ?
I have thought about doing some deeper-dive workshops, but haven't put in the customer-discovery time to figure out what topics would be best to tackle. Fund-raising strategy with an eye toward tracking impact on the cap table is certainly one of the potential topics. I plan to put together a survey with a short list of topics to gage interest.
Who writes the SAFE agreement, if its the founder, do I need a lawyer to help with the terms?
The SAFE agreement has already been drafted by Y Combinator, with blanks to fill in to specify the terms. But I believe it is always a good idea to have a lawyer review funding documents, and an emerging business attorney who is familiar with the deal flow in your area can also provide helpful advice on what terms are standard and expected.
Good job on this video
Thanks!
Very helpful.
Thanks!
excellent!
Thanks Tomas
*****SAFE AGREEMENT
A guest on The Wall Street Journal Report spoke sometime last week about making over $631,000 in 4months with a capital of $100,000, which made me realize that as a beginner i have alot to learn, so please assist me with any pointers or tips that would help me make this much profit.
Do I have to have the four different versions available to the investor to choose from, specially when pitching?