How much does it cost to draft a SAFE Note in New Jersey? Below are summary details about a user that needed to draft a
in New Jersey for Business.
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The user received 3 bids to draft the SAFE Note at a pricing range of $500 - $750 on a flat fee.
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What is the difference between a SAFE Note and Convertible Note?
I am considering raising money and have been advised to look at these two instruments to raise money on.
Answered Mar 3, 2021
Both SAFES (Simple Agreements for Equity) and Convertible Notes "convert" into equity. The fundamental difference between the two is that SAFES have no built-in interest rate and have no "end date." Convertible Notes are debt so they have an interest rate and after a certain period of time (perhaps two years in most cases) they can be "cashed in" by the holder who can force the start-up to pay back the investor (principal plus interest).
SAFES have become very accepted in the investing community at this time and I always recommend that a start-up issue SAFES (and conversely I always recommend that an investor get a convertible note).