Convertible Note vs SAFE: Which Wins in 2026

Compare convertible notes and SAFEs — interest, maturity, dilution math, and current investor preferences in 2026.

Convertible Note vs SAFE: 2026 Founder Guide

SAFEs won the seed stage. Notes still show up when non-US investors, bridges, or debt-preferring angels are involved. Pick with intent.

SAFE

No interest, no maturity. Post-money SAFE is the 2026 default. Cleaner cap table, faster close, standard terms.

Convertible note

4-8% interest, 18-24 month maturity, converts at next round. Still standard outside the US and for bridge rounds.

Dilution reality

Post-money SAFEs stack dilution more transparently than notes. Model the fully diluted cap table before signing anything.

Frequently asked questions

Is a SAFE always better?
In the US at seed, usually yes. For international investors or bridge rounds, notes still fit.
What discount and cap are standard?
20% discount, cap set at the target next-round valuation. Never sign uncapped.

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