This kind of situation is going to be a fact of life for the next year or two, as more start - ups run fail to raise their next round of financing. (inc.com)
Both SAFE and convertible notes allow for a conversion into equity, but while a convertible note can allow for the conversion into the current round of stock, or a future financing event, a SAFE only allows for a conversion into the next round of financing. (microventures.com)
Moreover, we take a substantial lead role in the seed financing, so there is no negative presumption when we introduce the company to our VC friends for the next round of financing. (ventureblog.com)