Convertible Notes & iSAFE in India: Fast, Compliant Early-Stage Capital

Traditional priced equity rounds often get bogged down in weeks of legal negotiations over company valuation, share certificate stamping, and shareholder agreements (SHA).

The iSAFE (India Simple Agreement for Future Equity) Advantage

Developed as the Indian counterpart to Y Combinator's SAFE, the iSAFE note simplifies early fundraising:

• **No Immediate Valuation Fixation:** Investors receive contractual rights to equity shares at a future qualified funding round (Seed / Series A) at a predetermined Valuation Cap or Discount Rate (typically 15%–20%).
• **Zero Debt / Interest Burden:** Unlike debt instruments, SAFE notes do not carry interest charges or fixed repayment deadlines, protecting startup liquidity.
• **Fast Execution:** A standardized 5-page document that can be reviewed, signed, and funded within 48 hours.

DPIIT-Approved Convertible Notes

For DPIIT-recognized startups, Convertible Notes provide full compliance under the Companies Act with clear 5-to-10 year conversion runways, offering maximum structural flexibility to domestic and NRI angel investors.