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To 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
by somewhat_drunk 3y ago
To 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?