SAFE: A better replacement for convertible notes - Brendan Ciecko - Innovation Nest Mentors
by Brendan Ciecko @brendanciecko
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?
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.
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…
Oh, you’re using SAFE…
My tips before you start
looking for an investor
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.
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.
START THE PROCESS EARLY
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
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.
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.
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.
Fundraising requires persistence. Do not give up.
Keep following up until you receive the final answer.