Paper Title
SAFE NOTES AS A “BETROTHAL” WITH A VENTURE CAPITALIST: START-UP FINANCINGIN THE LIGHT OF AN ENTREPRENEURIAL DISCOVERY PROCESS

Abstract
Abstract - More recently, SAFE notes have been increasingly used in the context of start upfinance, also in different varieties. The acronym stands for "Simpel Agreement of Future Equity". The contractual constellation is particularly interesting when such SAFE notes are negotiated for the first time in the run-up to an intended VC financing as a so-called seed note, as the basis for negotiation and decision-making is particularly imponderable here. Based on the presentation of essential characteristics of these SAFE notes (also in the newer forms as KISS and SEAL notes), the conceptually designed article aims to show which advantages and disadvantages this form of mezzanine financing offers to the parties involved and in which situations this financing instrument is really suitable for start-up companies. The thesis is that it makes sense to take an specifical view of the evaluation in order to distinguish between processual and structural aspects. Keywords - Convertible Bonds, SAFE Note, Seed Note, Start-ups, Venture Capital