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

SAFE stands for Simple Agreement for Future Equity. SAFE notes were created to provide a convertible note-like structure for startup funding but without interest rates or maturity dates. 

The SAFE note operates like a warrant which gives the investor the right to buy shares in a future-priced round. SAFEs are similar to convertible notes as they eventually convert to equity, but are different as they are not debt instruments.

There are many flavors of SAFE notes. Some come with valuation caps and some do not. Some come with discount rates and some do not. 

Startups use them because they are simple, although the cap table treatment later may require more work.

Technically, you should have a C-Corp if using a SAFE note as it must be noted on the cap table. 

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  

Music courtesy of Bensound.

In this episode, Hall welcomes Chris J. Younger, Managing Director at Class VI Partners.

Headquartered in Denver, Colorado, Class VI Partners provides investment banking and financial advisory services to middle-market businesses and entrepreneurs in Colorado and across the United States. The principals of Class VI Partners have completed hundreds of middle-market transactions and strategic advisory engagements, and by using a disciplined process and extensive research, Class VI Partners is able to provide you with the experience and judgment necessary to complete your transaction. 

Chris has over 30 years of deal experience. He started as an attorney in Silicon Valley, then led acquisitions (27 of them) and was the president for a $1B consolidation in the communications sector, and founded his investment bank Class VI Partners in 2005. He has personally worked on over 100 transactions representing over $2B in value, and has seen most of the bad movies that can occur with an acquisition. He loves working with entrepreneurs and believes their success is the foundation for the health of our communities.

Chris shares what excites him right now in the sector. He discusses the state of investing in startups, how he sees the industry evolving, and his investment thesis.

You can visit Class VI Partners at www.classvipartners.com, and on LinkedIn at www.linkedin.com/company/classvipartners. 

Chris can be contacted via email at chris@classvipartners.com, and via LinkedIn at www.linkedin.com/in/chris-younger-2a51486.  

Music courtesy of Bensound.