How to Raise Investment with a SAFE Note vs Convertible Loan (2026)

A SAFE (Simple Agreement for Future Equity) is a Y Combinator-pioneered instrument — the investor gets future shares (at a discount to the next round's price) in exchange for cash now, with no repayment obligation. A Convertible Loan is debt that converts to equity — has an interest rate, a maturity date, and technically must be repaid if not converted. UK angels typically prefer Convertible Loan Notes (ASA — Advanced Subscription Agreement). This article covers the mechanics, terms, and which to use.