3 ms·
SAFEs are common in equity crowdfunding. Raises on Republic are often SAFEs. I'm not a fan.
by somewhat_drunk 3y ago
SAFEs are common in equity crowdfunding. Raises on Republic are often SAFEs. I'm not a fan.
- jerrygenser 3y agoThey are also standard in early stage institutional equity funding.
- dotcoma 3y agoWhy are you not a fan of SAFEs ? Thanks.
- somewhat_drunk 3y agoTo be clear, I don't like them from the perspective of equity crowdfunding, which has an alarmingly high percentage of low-information, follow-the-crowd, "dumb money" retail investors. SAFEs muddy the waters. It's just another thing that already overwhelmed retail investors need to take into account when considering whether to invest. https://www.finra.org/investors/insights/safe-securities https://www.finra.org/investors/insights/safe-securities
- dotcoma 3y agoThanks. Agree, but are SAFEs any worse than a normal convertible?
- somewhat_drunk 3y agoAs long as there isn't a secondary market on which to trade, then no, they aren't any worse. And right now, there isn't a good secondary market in the USA.
- dotcoma 3y agoWould SAFEs be worse than normal convertibles if there were a good secondary market? Why?