SAFE Financing For Canadian Startups

A SAFE (Simple Agreement for Future Equity) is a popular way for Canadian startups to raise pre-seed money without setting a valuation today. Instead, investors get the right to receive shares later - usually when you close a priced equity round - based on a formula (often a valuation cap and/or discount).

In this in-depth blog post we cover:

• What a SAFE is (and what it is not)

• How SAFE conversion works (triggers + formulas)

• Pre-money vs post-money caps (why it changes dilution)

• SAFE vs convertible note vs priced equity

• Common founder mistakes and how to avoid them

• A simple conversion example with numbers

• …and more!

Let’s dive in!

Thank You For Reading. See You Next Time!

Think Team🙏