Safe: convertible debt without the debt
Y Combinator introduces the safe, a standard document created by Carolynn Levy as a replacement for convertible notes. The post says convertible debt makes fundraising quicker but brings debt-related complications such as a term and an interest rate, which a safe avoids while still allowing a valuation cap.
“The advantage of raising convertible debt is that it makes fundraising quicker.”— Y Combinator, Announcing the Safe, a Replacement for Convertible Notes, Dec 2013
Do this
Read the standard safe document this week and decide whether a safe or a note fits the early money you are raising.