Investors need to use some type of method to evaluate early-stage companies. Valuation is typically based on estimates and assumptions. The question that they want to answer is this: At what growth rate will this company be able to produce in 5 to 8 years?
SAFE agreements have many benefits for both investors and founders. But you should take a look at the drawbacks that exist. Here in this article some of the disadvantages that may exist with using SAFE notes instead of other options.