1/15/2024 0 Comments Safe moon price conversion![]() It is important to understand the terms of any SAFE in which you are investing through a crowdfunding offering. What is important to keep in mind about SAFEs? Despite its name, a SAFE may not be “simple” or “safe.” Not all SAFEs are the same and the very important terms governing when you may get the future equity may vary across the SAFEs being offered in different crowdfunding offerings. A SAFE is very different from traditional common stock and it is important to understand these differences in order to make an informed investment decision that is right for you.Ī SAFE is an agreement between you, the investor, and the company in which the company generally promises to give you a future equity stake in the company if certain trigger events occur. ![]() Some issuers have been offering a new type of security as part of some crowdfunding offerings-which they have called the SAFE. ![]() You can explore these and other risks and learn about how you can invest in securities-based crowdfunding in our Investor Bulletin regarding crowdfunding. For example, investing in a crowdfunding opportunity may come with increased speculative risk in connection with whether the venture succeeds at all as well as the increased illiquidity associated with investing in a company not listed on a stock exchange. Being able to invest at the early stages of a venture also exposes investors to new and additional risks that may not be as prevalent with investments in publicly listed companies. ![]()
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