The first phases of investment in Dutch startups are now increasingly structured by converted loans rather than equity. The main reasons for opting for a convertible bond rather than equity are that convertible bonds tend to be faster and more advantageous than stock market transactions and that discussions about valuation can be postponed (which is generally favorable to founders, as they appreciate not having to negotiate the valuation of the company with a team that is often still remote, For example, an unfinished product and barely enviable traction). A SAFE IS A convertible capital that is converted at a “liquidity point” (when a company starts raising equity funding, receives shares and is sold) and only needs to be traded on one point: the valuation cap. A SAFE document will be converted when the SAFE holder begins to raise equity, obtain shares or cash upon the sale of the business, an IPO or dissolution (in this case, the money would be distributed first to SAFE investors before any other). However, there is no official maturation date for the document. If a company is good enough to survive on its own without requiring new rounds of financing or equity financing, the SAFE document can be kept indefinitely, with almost no provisions justifying repayment. At the end of 2013, Y Combinator published the Investment Instrument Simple Agreement for Future Equity (SAFE) as an alternative to convertible bonds. [2] Since then, this investment vehicle has become popular in both the United States and Canada,[3] due to its simplicity and low transaction costs. .