Startup Financing 101: Equity, SAFEs, Convertible Debt & Dilution Explained
SAFEs and convertible debt provide startups with fast capital without requiring early valuation negotiations, but they can lead to unexpected dilution (i.e., your ownership percentage decreases as more shares are issued) when it comes time to raise equity funding. Use an equity financing model to map how SAFEs and convertible debt affect future ownership before you launch your next round.



