Category Archives: Start-ups and early stage ventures

Preference Shares Explained: What They Mean for Startups and Investors

Investing in an early-stage startup is inherently high risk. One way investors seek to reduce investment risk is by opting for ‘preference shares’ in place of ordinary shares. So, what is a preference share? The clue is in the name. Preference shares give the holder a ‘preference’ over other shareholders. There are many kinds of…

SAFEs for Start-ups. How safe are they really?

SAFE? A SAFE (Simple Agreement for Future Equity) is an alternative instrument used by startups to raise capital. Introduced by Y Combinator in 2013, SAFEs provide an alternative to traditional convertible notes or equity. Increasingly, we are seeing capital raising in NZ via SAFE instruments. This is understandable as conventional thought suggests a SAFE is…