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ARTICLE · 19 MARCH 2026

Safe vs. Convertible Notes: Navigating Financing Options In Nigeria

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Financing is an important component of every company's formation and growth. For early-stage companies...

NigeriaFinance and Banking
Aderonke Alex-Adedipe
Aderonke Alex-Adedipe
Hillary Okorotie
Hillary Okorotie

Introduction

Financing is an important component of every company's formation and growth. For early-stage companies, founders often face the important decision of selecting the investment model that best supports the company's development. While there are several financing options available such as direct equity investments and debt financing, this newsletter focuses on Simple Agreements for Future Equity (SAFEs) and Convertible Notes.

Understanding the differences between SAFEs and Convertible Notes is essential for investors and founders seeking to balance risk and growth opportunities in early-stage financing.

Understanding a SAFE

Introduced by Y Combinator in 2013, a SAFE is a contractual instrument through which an investor provides funding in exchange for the right to receive equity at a later date and upon the occurrence of a specified triggering event. Under a SAFE, the investor's return is realized when the company undergoes a liquidity-triggering event. These

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