SAFEs, Convertible Debt and Priced Equity: Evaluating Deal Structures for Early Stage Financings
Pros and Cons of Different Financing Options for Entrepreneurs and Investors

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Banking and Finance
- event Date
Thursday, May 23, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will discuss the pros and cons of simple agreements for future equity (SAFEs), convertible debt, and priced equity rounds and how to evaluate the optimal deal structure for start-up investment financing rounds. The program will present perspectives from both issuers/owners and investors, as well as look at the current terms and trends for financing early-stage companies.
Faculty

As an attorney practicing finance and franchise law in Pennsylvania and New York including a strong presence in the New York City, Philadelphia and Bucks County regions, Ms. Sigety focuses on a wide variety of corporate, finance, mergers and acquisitions, franchising, licensing and distribution matters. For 30 years, she has been a trusted adviser to clients, including emerging companies and entrepreneurs, handling business and financial transactions such as venture capital and angel financing, mergers and acquisitions, structured finance, securities, private placements, franchise regulatory matters and franchise agreements. She offers her clients a comprehensive practice equipped to provide risk management through innovative guidance in a company’s expansion

Mr. Kerwin is a partner in the firm's Corporate Department. He is also a member of the firm’s Emerging Companies & Venture Capital Practice Group and a founding member of the Technology Practice Group. He works with clients across a range of industries, and regularly advises startup and growth-stage companies on various matters from formation to exit, including choice of entity, corporate governance, corporate finance, private equity and venture capital transactions, securities, commercial contract preparation and review, employment issues, buy-sell agreements and shareholder disputes, intellectual property protection and transfer, and mergers and acquisitions. He is actively involved in the Philadelphia Alliance for Capital and Technology (PACT) and the Philadelphia Chapter of the Association for Corporate Growth (ACG).
Description
Convertible note financings and SAFEs have been a popular alternative for start-up investment financing due to the difficulty of obtaining a meaningful valuation determination and apparently less onerous documentation, sometimes making it a less costly option.
Despite the popularity of convertible debt and SAFE deals, frequently, early-stage investors require priced equity rounds. Indeed, many investors prefer a priced equity round because it provides the investor with greater certainty regarding valuation and greater rights, privileges, and protections than convertible debt or SAFEs.
Counsel representing emerging growth companies and their investors must carefully consider each financing mechanism's pros and cons to evaluate the preferred structure for a particular deal.
Listen as our authoritative panel of finance and securities attorneys reviews the pros and cons of SAFEs, convertible debt and priced equity rounds for start-up investment financing. The panel will discuss current terms and trends for financing early-stage companies and look at the issues from both entrepreneurs' and investors' perspectives.
Outline
- Current market terms and trends
- SAFEs: key terms
- Convertible notes: key terms
- Priced equity rounds: key terms
- Pros and cons of each deal structure
Benefits
The panel will review these and other highly relevant issues:
- Current terms and trends for financing early-stage companies
- How to determine the preferred deal structure: SAFEs, convertible debt or priced equity rounds
- Comparing and contrasting SAFEs vs. convertible notes vs. equity rounds
Unlimited access to premium CLE courses:
- Annual access
- Available live and on-demand
- Best for attorneys and legal professionals
Unlimited access to premium CPE courses.:
- Annual access
- Available live and on-demand
- Best for CPAs and tax professionals
Unlimited access to premium CLE, CPE, Professional Skills and Practice-Ready courses.:
- Annual access
- Available live and on-demand
- Best for legal, accounting, and tax professionals
Related Courses

Structuring Uptier and Drop-Down Financing Transactions: Crafting Loan Terms to Manage Exposure and Mitigate Risks
Thursday, May 29, 2025
1:00 p.m. ET./10:00 a.m. PT
Recommended Resources
Making Continuing Education Work for You, Anytime, Anywhere
- Learning & Development
- Career Advancement