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Startup Financing 101: How SAFEs and Convertible Notes Work | Equity funding explained

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✅ Watch episode 2: What's a valuation cap? https://www.youtube.com/watch?v=fcrsoartpFU

✅ Watch episode 3: The difference between pre-money and post-money SAFEs: https://youtu.be/Mj0LxtaLQIk

✅ Model your SAFE funding round with our free calculator: https://www.safes.carta.com

✅ Automate your cap table with Carta: https://www.carta.com

✅ Everything you need to know about fundraising with SAFEs: https://carta.com/blog/fundraising-with-safes/


Startup funding explained: If you're raising seed financing for your startup, chances are you're fundraising on a convertible instrument like a SAFE (Simple Agreement for Future Equity) or convertible note. But what are the differences between the two? And how are they different from raising a priced funding round, like a Series A?

In this episode of NO FEAR EQUITY, we break down the basics of raising seed startup funding by discussing the differences between priced rounds, SAFEs, and convertible notes. In the next episode, we'll discuss the key terms you need to know when raising a SAFE or convertible note.

NO FEAR EQUITY is a presentation of Carta, the #1 equity management platform for startups and equity-funded companies. We have plenty of free resources to help startup founders plan their fundraise, manage their cap table, and prepare to issue equity to investors and employees. Check out some of our resources here:

🔷 Carta's Series A pitch deck: https://carta.com/blog/carta-series-a/
🔷 Carta's Series D pitch deck: https://carta.com/blog/carta-series-d-pitch-deck/
🔷 Our free cap table template: https://carta.com/blog/cap-table-template/
🔷 Our free board deck template: https://carta.com/blog/board-deck-template/
🔷 What to look for in a 409A report: https://carta.com/blog/understanding-409a-valuation-report/

DISCLOSURE: This communication contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This communication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.

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