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In the early stages of a company, fundraising can be overwhelming, especially with terms like convertible notes and SAFEs (Simple Agreements for Future Equity) that may be unfamiliar. This tutorial aims to clarify these concepts. Typically, when raising funds, an investor provides money in exchange for equity, or ownership percentage, in the business. Each share's value is determined by the investment and total shares issued. Understanding how convertible notes and SAFEs work is crucial for founders to prepare for discussions with potential investors, ensuring they grasp the implications and terms of their fundraising efforts.
