The Downside of SAFE Notes

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

SAFE Notes were designed to simplify the investment process.

By removing many of the terms found in equity agreements, SAFE Notes reduce the complexity of startup fundraising.

SAFE notes are similar to a warrant as they give the holder the right to buy shares in the future.

There are drawbacks to SAFE Notes as follows:

There’s no debt component that can be used for payback.

SAFE notes require the holder to have a C-Corporation.

The SAFE note is listed on the Cap table like an option.

There’s no maturity date on SAFE Notes, so there’s no trigger to convert equity.

There’s no interest rate.

Over time, this can add additional value to the investor.

Many SAFE notes don’t have a valuation cap, which can reduce the value to the holder.

The presence of additional SAFE notes can reduce the return through dilution.

For early-stage funding, SAFE notes are simple to use, but they don’t always convert to equity the way investors thought they would.

Be sure to understand the SAFE note structure before using it for an investment.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
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How To Raise a First-Time VC Fund

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Raising a first-time venture capital fund is hard work.

Here are some key steps in raising a VC fund for the first time.

Build a track record of successful investing by joining an angel network and making small but profitable investments.

Share the deal flow with prospective Limited Partners so they learn your investment thesis.

Show the deal flow on a regular basis so they understand the consistency of your network.

Share your due diligence with those investors so they see the quality of work you do.

Perform market research on an area of interest and share the results with the prospective Limited Partners.

Build an investment thesis for how to invest in the area of interest.

Showcase the investment thesis in your investing so the Limited Partners understand your methodology.

Present a few successful investments to the Limited Partners.

By showing them your market research, investment thesis, and track record, the Limited Partners can better understand the value of your work.

Ask for an initial investment from the Limited Partners to continue the process already underway.

Consider these steps for raising a first-time VC fund.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

In this episode of Investor Connect, we engage with Nathan Monty, co-founder and CEO of Enamel Pure, a company pioneering advancements in dental hygiene through novel laser technology.

Nathan walks us through the development of their innovative product, 'Loon,' which uses a laser for non-contact teeth cleaning, hardening, and whitening, paired with advanced imaging to produce an annual oral health report. He emphasizes the inefficiencies and pain points in traditional dental cleaning methods and explains how Enamel Pure's technology not only improves the patient experience but also significantly enhances diagnostic accuracy with AI-driven analysis from a rich dataset of dental images.

The episode covers the company's business model, partnerships with major distributors like Henry Schein and Benko, and their robust intellectual property portfolio. Nathan also discusses their go-to-market strategy and plans for future AI integrations, aiming to create the most comprehensive dental health database. Finally, he shares insights into their successful FDA clearance and ongoing fundraising efforts to expand production and distribution, providing a comprehensive look at Enamel Pure's promising future in modernizing dental care.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

________________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.