Tran VC Content Team

When you’re just starting out, the last thing you want to worry about is giving up too much ownership. That’s why tools like SAFEs and convertible notes exist. They’re meant to make early-stage fundraising faster and easier—so you can focus on building, not legal math. But there’s a cost. And it often hides until later. […]

You’ve probably heard it a dozen times—“Just raise on a SAFE.” It sounds simple. Fast. Founder-friendly. No need to set a valuation. No board seats to negotiate. And no interest ticking away like with a note. For most early-stage founders, a SAFE feels like the obvious choice. But here’s the truth: SAFEs aren’t automatically safe.

Raising with a convertible note feels like a shortcut. Fast, simple, and flexible. You get the money, and the tough parts—like setting a valuation—come later. But there’s a catch. The real terms that shape your future are hiding in plain sight. Interest. Maturity. Caps. Discounts. Conversion mechanics. It all sounds harmless until the moment those

You’ve got interest from investors. You’re talking SAFEs or convertible notes. The check is ready. But then the term sheet shows up—and suddenly you’re staring at words like “valuation cap” and “discount.” You nod along. But inside, you’re unsure. Do you need both? Which one matters more? And how do they change what you’re really

You’re building fast. You need capital now. But pricing a full equity round feels too slow, too expensive—or just too early. That’s when someone says: “Just use a convertible note.” It sounds easy enough. But the truth is, most founders don’t actually know how notes work. They know it’s not equity. They know it converts

Raising your first round feels exciting—until you start reading legal docs. Everyone talks about SAFEs like they’re the easiest path. And in many ways, they are. No interest. No repayment. No valuation pressure upfront. But what’s often left out is how SAFEs actually play out in the long run. The truth is, while SAFEs are

You’re building something real. Maybe it’s early, but the signals are there. And now you’re raising money. The question is: how? Investors keep asking whether you’re using a SAFE, a note, or equity. You nod, say you’re still figuring it out, then Google it when the call ends. You’re not alone. Most founders don’t start

When you’re raising early money for your startup, a SAFE seems like the easy answer. No valuation. No interest. No messy legal work. You sign the doc, get the funds, and move on. But what happens later? What do all those SAFEs do to your ownership—your cap table—once it’s time to raise again? This is

Most early-stage founders hear one thing over and over: use a SAFE. Maybe a convertible note. Equity? That’s for later. And that’s mostly true—until it’s not. There’s a point where using equity starts to make more sense than kicking the can down the road with SAFEs or notes. It’s not always obvious. But if you

If you’re raising money for your startup, you’ve probably heard the terms “SAFE” and “convertible note” more than once. They both seem simple. They both help you get capital before setting a formal valuation. And they both promise speed. But here’s the problem: just because they look similar doesn’t mean they work the same. Each