Comprehensive Legal Support for Convertible Notes & SAFE Agreements
Convertible Notes and SAFE (Simple Agreements for Future Equity) are popular financing instruments in the startup and venture capital ecosystem. They provide a flexible way for companies to raise early-stage funding while delaying complex equity valuation discussions until later investment rounds. Our legal team offers complete advisory services for both startups and investors, ensuring compliance, clarity, and protection of interests at every stage of the transaction.
What does Convertible Notes & SAFE consulting service include?
- Legal review and drafting of Convertible Note and SAFE agreement terms.
- Structuring conversion mechanics: valuation caps, discount rates, and conversion triggers.
- Advising on investor protections, interest accrual (for notes), and maturity terms.
- Customizing agreements to fit fundraising strategies and jurisdictional requirements.
- Coordination with tax and accounting advisors for compliance and risk minimization.
- Negotiation support to balance company growth objectives with investor expectations.
- Representation in multi-investor rounds and alignment of different SAFE/Note terms.
- Advisory on conversion into equity during priced rounds or upon liquidation events.
Why is professional legal advice essential?
Although Convertible Notes and SAFEs are marketed as “simple,” they often involve complex legal and financial implications. Professional guidance ensures:
- Properly drafted agreements that protect both startup founders and investors.
- Avoidance of hidden dilution risks or unexpected liabilities at the conversion stage.
- Compliance with securities regulations and investor qualification requirements.
- Strategic alignment with long-term fundraising goals and exit strategies.
- Minimization of disputes between founders, investors, and future shareholders.
How Convertible Notes & SAFE advisory works: stages and conditions
- Initial consultation — understanding the client’s funding needs, investor profile, and business goals.
- Document structuring — drafting or reviewing Notes/SAFE terms, tailoring key provisions (caps, discounts, maturity).
- Negotiation and execution — aligning terms with investors, supervising signing and compliance checks.
- Ongoing support — managing amendments, tracking conversion events, and advising during priced rounds.
Service can be provided under the following conditions:
- Clear disclosure of company’s current capitalization, outstanding obligations, and prior financing.
- Agreement on key economic terms (valuation cap, discount, maturity date if applicable).
- Compliance with local securities and corporate governance requirements.
Convertible Notes and SAFE Agreements offer startups a fast and efficient way to secure funding, but their simplicity can be deceptive. With professional legal support, you ensure your fundraising is secure, compliant, and aligned with your company’s growth path.
