A Simple Agreement for Future Equity and a convertible note both allow startups to raise capital before determining a valuation, but they differ in several important ways. Convertible notes are debt instruments that accrue interest and have maturity dates, meaning they must eventually be repaid or converted into equity. SAFEs, on the other hand, are not debt and do not accrue interest or require repayment schedules. This makes SAFEs simpler and more flexible for startups. AngelSchool often covers these differences to help founders choose the most appropriate financing method for their fundraising goals.