Pre-Money vs Post-Money SAFE | Eqvista

With a SAFE, an investor may fund a startup in return for potential stock in the company at a later date. The process is as straightforward as its name suggests. Money invested does not accrue interest or have a set repayment schedule but rather becomes equity in the company at the time of the next fundraising round. This might be a win-win situation for the startup’s creator and the investor since there is nothing in the way of paperwork or intensive legal representation. Yet, there’s a lot that you must know about pre-money SAFE and post Money SAFE, which we will discuss in this video.

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