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SAFE for VCs, not so safe for startups

In recent years, “SAFE” notes have become one of the most common ways for early-stage startups to raise capital in the U.S. Still, most international founders have never heard of them. Lifelong entrepreneur and innovation consultant Michael Burtov explains the challenges these notes present to startups and angel investors.
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Do investors steal the ideas you pitch them? Yes, all the time, and here’s why.

Tales about devious investors conniving to take advantage of aspiring entrepreneurs have been circulating in the tech community for a while. Most founders dismiss such stories as urban legends, but in fact, some VCs do steal ideas from early stage startups in order to boost their own struggling portfolio companies. Immigrant entrepreneurs, who have limited access to capital and are often overly eager to find an investor, should approach fundraising with caution, warns Michael Burtov, a star mentor and lifelong entrepreneur.