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0 pointsdotcoma2y ago0 comments

Why are you not a fan of SAFEs ? Thanks.

0 comments

To be clear, I don't like them from the perspective of equity crowdfunding, which has an alarmingly high percentage of low-information, follow-the-crowd, "dumb money" retail investors.

SAFEs muddy the waters. It's just another thing that already overwhelmed retail investors need to take into account when considering whether to invest.

https://www.finra.org/investors/insights/safe-securities

dotcomaOP2y ago

Thanks.

Agree, but are SAFEs any worse than a normal convertible?

somewhat_drunk2y ago

As long as there isn't a secondary market on which to trade, then no, they aren't any worse. And right now, there isn't a good secondary market in the USA.

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somewhat_drunk2y ago

To be clear, I don't like them from the perspective of equity crowdfunding, which has an alarmingly high percentage of low-information, follow-the-crowd, "dumb money" retail investors.

SAFEs muddy the waters. It's just another thing that already overwhelmed retail investors need to take into account when considering whether to invest.

https://www.finra.org/investors/insights/safe-securities

dotcomaOP2y ago

Thanks.

Agree, but are SAFEs any worse than a normal convertible?

somewhat_drunk2y ago

As long as there isn't a secondary market on which to trade, then no, they aren't any worse. And right now, there isn't a good secondary market in the USA.

1 more reply

j / k navigate · click thread line to collapse