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In the early stages of a company, fundraising can be overwhelming with various options available. Two common methods are convertible notes and SAFEs (Simple Agreements for Future Equity), but many find them confusing. This edition of "No Fear Equity" aims to clarify these fundraising tools, helping entrepreneurs understand what they entail before engaging with investors. Typically, fundraising involves an investor providing money in exchange for equity, which means sharing ownership of the business. Each share represents a portion of the company’s value. Understanding these concepts is crucial for effectively navigating discussions with potential investors.
