EP 56: Hidden Dangers of SAFE Agreements with Massive VC's Ari Newman
Description
In this episode, we're joined by Ari Newman, co-founder and managing partner of Massive VC. Ari is a successful exited founder, former partner at Techstars, and experienced board member. His unique hybrid investment model at Massive VC combines committed capital with deal-by-deal flexibility, offering investors unprecedented access and information for seed-plus to growth-stage investments.
Our conversation with Ari covers the potential pitfalls of SAFE agreements and the importance of proper company structure, his journey from founder to investor, and the dynamics of board relationships. Ari shares valuable insights on the crucial role of trust and communication between founders and investors, drawing from his extensive experience on both sides of the table.
Here's what you're in for:
00:49 The impact of SAFEs on founders and potential pitfalls
05:55 Stacking SAFEs and the challenges it creates for fundraising
12:01 The importance of proper company structure and governance
19:35 Ari's experience investing in Chainalysis during the early days of blockchain
22:06 Comparing fundraising as a founder vs. as a VC
29:54 The importance of trust and communication in board relationships
This episode is sponsored by ThunderVC, an investment bank for founders by founders.
Raising capital? Get a list of vetted VCs for FREE here: https://web.thunder.vc/list-of-investors-vcs-for-founders
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ABOUT ARI NEWMAN
Ari Newman is the co-founder and managing director at Massive VC and Partner at The Fund Rockies. Ari brings a wealth of experience as a 2x founder with 15 years on the operating side, and has been in venture capital since 2012. He's also a mentor, advisor, and board member, having previously served as a partner at Techstars. Ari brings his background both as an entrepreneur and investor to help founders navigate the challenges of building and scaling technology companies.
Connect with Ari on:
Linkedin: https://www.linkedin.com/in/arinewman/
Email: ari@massive.vc
Website: https://www.massive.vc/
ABOUT FUNDRAISING DEMYSTIFIED
Our goal is simple: to equip you with the knowledge, inspiration, and guidance to navigate the labyrinthine world of fundraising. Whether you're a budding entrepreneur seeking seed funding or an established founder looking to scale your business, this podcast will provide you with the tools you need to conquer the fundraising landscape.
Thank you for being a loyal subscriber to Fundraising Demystified. We appreciate your support and are excited to continue bringing you more inspiring stories from successful founders.
ABOUT JASON
Jason Kirby is the co-founder of Thunder VC. He is a serial entrepreneur with 4 multi-million exits and decades of experience in fundraising and business building. He has coached hundreds of entrepreneurs in his career on fundraising, investing, capital strategy, and business development.
You can reach out to Jason through:
- Email: jason@thunder.vc
- LinkedIn: https://www.linkedin.com/in/jasonrkirby/