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SAFEs, Convertible Debt and Priced Equity: Evaluating Deal Structures for Early Stage Financings

Pros and Cons of Different Financing Options for Entrepreneurs and Investors

A live 90-minute premium CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, May 23, 2024 (in 5 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926

This CLE course will discuss the pros and cons of simple agreements for future equity (SAFEs), convertible debt, and priced equity rounds and how to evaluate the optimal deal structure for start-up investment financing rounds. The program will present perspectives from both issuers/owners and investors, as well as look at the current terms and trends for financing early-stage companies.

Description

Convertible note financings and SAFEs have been a popular alternative for start-up investment financing due to the difficulty of obtaining a meaningful valuation determination and apparently less onerous documentation, sometimes making it a less costly option.

Despite the popularity of convertible debt and SAFE deals, frequently, early-stage investors require priced equity rounds. Indeed, many investors prefer a priced equity round because it provides the investor with greater certainty regarding valuation and greater rights, privileges, and protections than convertible debt or SAFEs.

Counsel representing emerging growth companies and their investors must carefully consider each financing mechanism's pros and cons to evaluate the preferred structure for a particular deal.

Listen as our authoritative panel of finance and securities attorneys reviews the pros and cons of SAFEs, convertible debt and priced equity rounds for start-up investment financing. The panel will discuss current terms and trends for financing early-stage companies and look at the issues from both entrepreneurs' and investors' perspectives.

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Outline

  1. Current market terms and trends
  2. SAFEs: key terms
  3. Convertible notes: key terms
  4. Priced equity rounds: key terms
  5. Pros and cons of each deal structure

Benefits

The panel will review these and other highly relevant issues:

  • Current terms and trends for financing early-stage companies
  • How to determine the preferred deal structure: SAFEs, convertible debt or priced equity rounds
  • Comparing and contrasting SAFEs vs. convertible notes vs. equity rounds

Faculty

Kerwin, Terrence
Terrence M. (Terry) Kerwin

Partner
Fox Rothschild

Mr. Kerwin is a partner in the firm's Corporate Department. He is also a member of the firm’s Emerging...  |  Read More

Sigety, Elizabeth
Elizabeth D. Sigety

Partner & Chair, National Emerging Companies & Venture Capital Practice
Fox Rothschild

As an attorney practicing finance and franchise law in Pennsylvania and New York including a strong presence in the New...  |  Read More

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