Simple Agreement for Future Equity which is a better replacement for convertible notes.

1. Fundraising:
SAFE
by Brendan Ciecko @brendanciecko

2. Innovation Nest – Poland most active
seed fund invites hand selected
companies to a series of closed
events. This one is about money.
WHAT IS THIS?

3. WHO IS BRENDAN?
Brendan Ciecko is the Founder & CEO
of Spotzer, a start-up with the vision
to transform the way people engage with
art and culture at museums and beyond.
getspotzer.com
@brendanciecko

4. So what is SAFE
anyway?

5. SAFE
Simple Agreement for Future Equity
A better replacement for convertible notes.
What’s SAFE anyway?

6. introduced by Y Combinator in 2013
fast to execute
keeps down legal costs
intended to replace convertible notes
SAFE in a nutshell:

7. short & easy to understand
not debt, not a loan
conversion to equity at priced round
no risk of insolvency
and a little bit more:

8. It requires only 5 pages therefore
is short and easy to understand
It keeps things simple
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9. What is so innovative
about SAFE?

10. SAFE
CONVERTIBLE NOTE
FAST & SIMPLE
CONVERSION TO EQUITY
CORPS ONLY
INTEREST RATE
MATURITY DATE
CORPS & LLC
DISCOUNT
CAP
MFN
EARLY EXIT
Let’s compare:
SAFE

11. Reactions to SAFE

12. I’ve never seen this before
I’m trying to figure out if your investment
structure allows me to get a certain tax
treatment. The SAFE structure is a bit
atypical, although more the norm now.
”
”
Reactions to SAFE are mixed…

13. …even (especially?) within investors…

14. Oh, you’re using SAFE…
Awesome!
…but finally!
”

15. My tips before you start
looking for an investor

16. FIND MENTORS & ADVISORS
They provide advice, introductions, investment,
and social proof.
They care about your business as much as you
do and will be able to provide you with valuable
connections and advice.
#1

17. Fundraising is extremely time consuming for CEO.
It’s crucial to plan the whole process as you’ll find
yourself fundraising for next couple of months.
#2
START THE PROCESS EARLY

18. Prepare different set of
pitches that you can use
in certain situations, eg:
ITERATE YOUR PITCH
20 second pitch
Just enough information
to grab attention
1 minute pitch
Give something to attract
and explain briefly the idea
5 minutes pitch
Provide more details but
do not bore the audience
#3

19. FIND A LAWYER THAT SPECIALIZE IN START-UP LAW
You don’t have to know all legal nuances.
It’s always better to be safe than sorry.
#4

20. RELATE
When contacting an investor try to find things that you
two have in common. It shortens the distance and builds
a nice foundation for longer relationship.
#5

21. WARM VS COLD INTRODUCTIONS
Being referred to an investor by CEO of one of
their portfolio companies will work much better
than sending cold emails.
#6

22. BE PERSISTENT
Fundraising requires persistence. Do not give up.
Keep following up until you receive the final answer.
#7

23. And lastly: not all advice
is a good advice.

24. This presentation is brought to you by Innovation Nest
Learn more about us at innovationnest.co