Not So Secret Sauce S2 EP2: SAFEs Evolution in African Early-Stage Venture Funding

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Not So Secret Sauce S2 EP2 - SAFEs Evolution in African Early-Stage Venture Funding

Adam Wakefield, Managing Editor at Founders Factory Africa hosts this SAFEs (Simple Agreement for Future equity) focused episode featuring Founders Factory Africa's Head of Legal, Lumi Mustapha and Deputy Head of Legal, Thando Sibanda

The African tech ecosystem is growing rapidly, and there is increasing demand for capital from startups. In recent years, SAFEs, or Simple Agreements for Future Equity, have become an increasingly popular way for African startups to raise capital.

SAFEs offer several advantages over traditional venture capital financing, making them an attractive option for startups and investors alike. Thando and Lumi discuss what SAFEs are, why they are becoming popular across the African ecosystem, and what the future holds for SAFEs in the continent.

What to look forward to in this episode:
  • Equity in the conversation between an investor and startup [06:54]
  • The basics of an agreement between the founder and investor [09:24]
  • The relevance of SAFEs in the negotiations process [13:21]
  • Evolution of SAFEs in the last 10 years [15:26]
  • Factors driving the evolution of SAFEs [20:46]
  • The balance of power between founders and investors [25:13]
  • The validity of enforcement mechanisms within SAFEs [28:45]
  • SAFEs in the context of Africa [31:01]
  • What founders should look out for during the negotiation phase with investors [34:17]


Connect with Adam Wakefield on Linkedin
Connect with Lumi Mustapha on Linkedin
Connect with Thando Sibanda Linkedin

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Not So Secret Sauce S2 EP2: SAFEs Evolution in African Early-Stage Venture Funding
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