Beware beware. The investors in your next round WILL NOT LIKE THIS DEAL. Why? Their money doesn't go to building your business, it goes to paying off this SAFE.
They might not like it (especially if there's a large effective discount), but that's not why.
If you raise a next round the SAFE never gets paid off - it converts into equity in the round. None of the equity investors' money is at risk of being used to pay off the SAFE.
If you raise a next round the SAFE never gets paid off - it converts into equity in the round. None of the equity investors' money is at risk of being used to pay off the SAFE.