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In the early stages of a company, fundraising can be complex. This tutorial focuses on two common methods: safes (Simple Agreements for Future Equity) and convertible notes. It explains these concepts in detail to clarify how they work. Fundraising typically involves an investor providing money in exchange for equity, which represents ownership in the company. For example, if an investor contributes $100 for 100 shares, each share is worth $1. Understanding these fundraising mechanisms is crucial for entrepreneurs as they begin discussions with potential investors, ensuring they know what to expect and the implications of these agreements.
