SAFE (or simple agreement for future equity) notes are documents that startups often use to help raise seed capital, a.k.a the initial amount of money an entrepreneur uses to start a business. Essentially, a SAFE note acts as a legally binding promise to allow an investor to purchase a specified number of shares for an agreed-upon price in the future.
Today we highlight one tool and one tip we give founders in our programmes when they’re considering raising capital.
First time raising capital? Checkout this free guide. It will help with the mountain of jargon heading your way.
One Tool: SAFE Genie
SAFE Genie is an excellent tool which allows you to explore the impact of SAFEs and convertible notes on founder ownership.
Simply input the details of your round and your Series A goals - then immediately get a snapshot of ownership for a range of valuations. It’s a great place to start before you slave over a more detailed spreadsheet.
One Tip: Talk to Other Founders
SAFE Genie is an easy way to quickly look at different scenarios for your round, but it is only a tiny piece of the puzzle when it comes to raising capital.
While there are dozens of great guides for the other parts of raising capital, sometimes the most useful thing you can do is speak to another founder who has been in a similar position to you.
Here’s a quick list of the different places you might be able to find that peer to talk to.
The Distiller Incubator
We connect founders 1 on 1 through the Distiller Incubator. We also hold a monthly lunch where our current founders and alumni get together to share kai and kōrero and discuss different topics such as capital raising
NZ Tech Startup Eco-System Facebook Group
This is an open community of entrepreneurs, founders, investors, developers, designers, advisors and anyone who is interested in startups in New Zealand.
It’s a great place to ask questions and connect with other founders. Click here to visit the group.
The Southern Entrepreneurs Facebook Group
In Dunedin, Invercargill or Queenstown? The Southern Entrepreneurs Facebook Group was started by a founder of Winely as a way to connect Dunedin based entrepreneurs. Recently, it was opened to other communities in the south.
Found a founder that you really want to link up with? Send a direct connection request with a note on LinkedIn.
Blackbird Giants
Giants is a cohort based programme for curious and ambitious founders to connect with each other and wide range of mentors.
Feeling stuck?
The startup world is full of jargon and mystery. If you need help finding your next steps, book in with us for a free startup check-in.