The Technicalities of Convertible Notes & SAFEs

Raising capital using SAFEs and convertible notes can be confusing for both entrepreneurs and investors. For entrepreneurs, calculating the full extent of dilution can be difficult when raising with convertible securities, and for investors, it isn’t always as simple as “if I invest $X then I will own Y%.” Indicator’s Geoff Bernstein breaks down the nuances of different convertible securities frequently used at the Pre-Seed and Seed stages here on Almanac, one of Indicator’s portfolio companies.