"Will Angel Investors Put Their Money in a SAFE?" VC-List
In an article published on September 9, 2015, by VC-List, Jonathan B. Wilson describes a common dilemma faced by entrepreneurs in an uphill battle to grow their businesses, particularly when angel investors are skeptical that it can be done effectively. A solution, proposes Mr. Wilson, is the Simple Agreement for Future Equity, or SAFE Agreement, that gives investors a non-quantifiable equity interest in the issuer that will convert into preferred stock at a defined conversion rate when the next qualified investment round occurs. He advocates that the investor put his money to work to gain equity determined by subsequent investors benefited by hindsight, giving the angel investor a unique and unprecedented investment perk. View the complete article online.