News
For entrepreneurs, there are several types of investments and different ways of implementing them that take into account the distinct interests at stake: those of the startup and the promoter partners (the founders) and those of the investors. Rita Trabulo, CCA's Managing Associate of the Startinnovation Team, in an opinion piece for Emagazine, explains what a Simply Agreement for Future Equity - SAFE for short - is and how it works; one of the most widely used investment tools in entrepreneurship.
"A SAFE is a financing agreement thought to be simple, agile and inexpensive, which is usually seen as preferable to convertible notes, as it is not considered debt (liability) and does not imply maturity dates or interest, or even preferable to financing rounds that involve capital injections into the company (...) but is a SAFE actually 'safe'?".
According to the Startinnovation Team's Managing Associate, "there is no perfect solution. Imagine an (expectedly long) path of yellow tiles leading to the long-awaited city of Oz, the unicorn status or alike, founders and investors follow side by side, with their own interests but not always opposed or incompatible. You just need to be attentive to the shoes you wear, that is, the way you choose to move forward on this path and be aware of its fragility and the risks it involves".
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- Emagazine