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Convertible notes still feel safer for traditional angels because of the maturity date and interest rate protections. SAFEs can sometimes lead to cap table bloat and nasty valuation surprises down the road if founders aren't careful.
I almost always push for a uncapped SAFE with a discount when investing in pre-revenue founders. It cuts out thousands of dollars in legal fees and lets the team focus on product-market fit instead of negotiating complex debt maturity dates.
Debates the pros, cons, and investor sentiment around using YC SAFE agreements versus traditional Convertible Debt Notes for early-stage seed rounds.