What is the difference between a convertible note and a safe note?

Convertible notes have been around for a longer time whereas safe notes have been invented more recently (in 2013).  A convertible note is debt, while a safe note is a convertible security that is not debt. Here are a few articles that explore their differences.

https://fundersclub.com/learn/safe-primer/safe-primer/safe-vs-convertible-note/

https://blog.indinero.com/seed-investment-7-ways-to-compare-safe-to-convertible-notes/

https://medium.com/8vc-news/safe-vs-convertible-promissory-note-4df73f53d8ea

 

Y Combinator introduced the safe (simple agreement for future equity) in late 2013, and since then, it has been used by almost all YC startups and countless non-YC startups as the main instrument for early-stage fundraising. Read more here.

 

 

 

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