Founder and CEO PeaTos Brand (Snack it Forward), Founder and CEO NP Capital Advisors, Private Equity Managing Partner & Investor, Chairman of Board
SAFE NOTES ARE NOW UNSAFE... OK so what is going to happen to the money that was poured into CPG Brands via these supposed SAFE Notes? Issue is that no priced round took place and now it is likely if it did happen it would be at a fraction of the valuation that was contemplated leading to massive dilution for the founder. Many have a cap...few have a floor. and unless they are converted it will be impossible to raise new money at any valuation. #cpg #safenotes #fundraising
SAFEs were always an amateur move for any company. They were favored by the "look I can download a template, so I don't need to hire a lawyer" crowd.
If contemplating debt to avoid further dilution, we offer lines of credit and term loans starting at Prime+1. Asset based "inventory and AR" lines up to $100 mil. Can work around small losses in many cases. Several solutions for all business types from premium borrowers with maxed out bank lines to high risk scenarios. We also offer uncollateralized term loans up to $500,000 and $275,000 lines of credit. 100% credit and cash flow driven. Term loans start at prime + 1 and lines at 1% / month.
Good post. SAFE Notes are not safe for investors or the company.
Founder with 3 exits in B2C now actively buying SMBs | I post daily lessons & learnings that are your shortcuts.
6moNot dissimilar from convertible notes (save the interest)