SAFEs Have Definitively Won the Early Funding Format War

SAFEs Have Definitively Won the Early Funding Format War

Author

Peter Walker

|

Read time: 

1 minute

Published date: 

November 20, 2025

Since Q1 2020, SAFEs gained share in every US market as convertible notes declined consistently—even sectors that once favored notes have shifted to the SAFE.

LinkedIn: SAFEs Have Definitively Won the Early Funding Format War

The battle is over: SAFEs won.

Doesn't matter where you are in the US, startup founders now use SAFEs as the default way to get initial capital into their companies.

In 2018 and 2019, there was a real fight between SAFEs and Convertible Notes as to which instrument would become the default path for early capital.

But since Q1 2020, the SAFE has gained share in all markets while the Note consistently lost ground.

(Caveat - the only place this has been less true is in Biotech startups, but even there the SAFE is well used).

I've heard 𝗮 𝗹𝗼𝘁 of objections to SAFEs. Some of them are a bit silly ("founders who use SAFEs don't get the market"), some of them are pretty substantial ("what even are SAFEs under the law?").

But none of them have really mattered.

If you're a founder raising capital, you need to understand the SAFE and how it works.

Got many explainers for you, ping em in the comments for direct links.

Peter Walker
Author: Peter Walker
Peter Walker runs the Insights team at Carta, focused on discovering key data and narratives across the private capital ecosystem. In a former life, he was a marketing executive for a media analytics startup and led the data visualization team at the Covid Tracking Project.

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