Common Contracts
1 similar Convertible Loan Agreement contracts
Convertible loan agreement term sheetConvertible Loan Agreement • February 2nd, 2022
You need to get shite done and product shipped, and frankly you’re not really worth enough for anyone to really care about information rights and the like. The difference here is that whilst a convertible note can allow for the conversion into the current round of stock or a future financing event, a SAFE only allows for conversion into the next round of financing when preference shares are issued. This is nice for simplicity, but it doesn’t give control to you. Removed pro rata right They removed the pro rata right as a default, which was a default in the original safe. The SAFE is written to give the investor the choice of a 1x payout or conversion into equity on an “as converted basis”. This creates a lot of uncertainty for investors (less with the post note), but that’s not your problem. SAFE vs. One little difference is the SAFE may convert (depends on which SAFE document you use) into a class of stock called SAFE Preferred Stock. You wouldn’t even notice if you didn’t pay attenti
