Fundraising? There’s a SAFER way!
Founders rely on SAFEs as an easy way to get money from investors without spending fortunes on legals. However, SAFEs come with disadvantages for founders. Notably, the dilution stacks up - you're essentially giving investors a non-diluting investment until the SAFE converts.
And for investors, SAFEs mean they lose out on loss relief, which almost nobody knows that they could get, and possibly lose out on QSBS tax relief. And they lose out on control and information rights that can sometimes be solved with a side letter.
What if there's a better way? What if you could issue stock to investors immediately, giving investors the tax benefits (particularly loss relief) and for you avoiding SAFE dilution?
In this workshop, Anthony Rose, founder and CEO at SeedLegals will show that if you're raising your second batch of SAFEs, you're costing yourself multiple points of equity and hundreds of thousands of dollars, potentially millions of dollars, in personal stock value compared to taking in that second batch of investment as a priced round and converting the first batch of SAFEs sooner rather than letting them keep stacking.