You raise $200K on a convertible note at 7% interest with an 18-month maturity. Straightforward enough. But if your Series A takes two years instead of one, that note converts at $228,000, not $200K. The extra $28,000 buys your investor more shares at your expense.

SAFEs don't do this. No interest, no maturity clock. The $200K stays the same whether you convert in 12 months or 36.

That difference compounds when you stack instruments. Three convertible notes totaling $600K at 6% over 24 months convert into $672,000 worth of equity. That's $72,000 in dilution you didn't price into your cap table on day one.

Notes work well for bridge rounds or institutional investors who want debt structure. But if you're raising a pre-seed or seed from angels, a SAFE lets you know your exact dilution before the round even closes. No interest accrual will shift the math after you've already signed.

SaaS stocks have been repriced sharply in early 2026 as investors debate what AI agents mean for traditional per-seat software models.

Salesforce tried to confront that concern directly during this week’s earnings, reporting $11.2B in Q4 revenue ($10.7B of that from subscription and support), while Benioff repeatedly mocked “SaaSpocalypse” fears and the company announced a $50B buyback.

Separately, industry pricing data suggests seat-based pricing is losing share while hybrid models are gaining ground. If you still price per seat, expect investors in 2026 to push hard on pricing durability if customer headcount shrinks.

Sources: TechCrunch | Reuters | Growth Unhinged | Business Wire