Expert legal insights for founders navigating the complexities of building their dreams.

How Does a SAFE Convert in a Down Round or Acquisition?
When startup founders consider raising capital through a Simple Agreement for Future Equity (SAFE), one of the most critical questions they face is understanding exactly how these instruments will convert in various scenarios. While much attention focuses on how SAFEs convert in successful equity financing rounds, the mechanics of conversion during acquisitions and down rounds are equally important—and often overlooked.